On June 3, 2025, the Connecticut General Assembly adopted a new biennial state budget for fiscal years 2026 and 2027. This nonpartisan analysis details changes to state education funding in the budget, and provides a brief overview of the general fiscal outlook of the state budget and economy.
Excess Cost grant reimbursement requests for FY 2024 significantly exceeded the $181 million appropriated for the grant in the state budget, and are expected to exceed the amount appropriated in FY 2025. Without additional funding, districts and towns will not receive the reimbursement levels specified in statute for the Excess Cost grant, resulting in less funding for all districts educating high-needs students with disabilities.
The Excess Cost grant is the State of Connecticut’s method for sharing in the expense for students who have extraordinary special education needs and associated costs. During the 2023 legislative session, the General Assembly increased the appropriated amount of the Excess Cost grant and amended the grant’s formula for reimbursing school districts.
Each day, more than 68,700 of the students who pass through the doors of Connecticut’s public schools require special education services, making up 13 percent of the state's total public school enrollment. The individual learning needs of these students are wide-ranging and unique. As a result of these wide-ranging needs, the resources required to provide students with a “free appropriate public education” vary significantly, and often pose difficult planning and financial questions to Connecticut’s public schools. The report examines the special education finance systems of all 50 states and finds Connecticut is one of only four states in the country that does not have a system for funding all special education students.