On May 7, 2024, the General Assembly passed H.B. 5523, a budget stabilization bill that appropriates funds for fiscal year 2025 and makes a number of different policy changes to K-12 education and other areas. Along with maintaining the $150 million in additional funding for K-12 education in FY 2025 that was allotted as part of the state budget passed last year, the bill overhauls how Connecticut distributes state education funding to school districts.
Overcoming Connecticut's fiscal challenges to produce a balanced budget that maintains service levels and fulfills policy objectives requires creative solutions. Examining the state’s non-appropriated accounts for possible resource reallocation opportunities is one potential solution. The purpose of this policy briefing is to provide insight on what non-appropriated accounts are, how these accounts fit into the state’s budgeting process, and how including non-appropriated accounts in the budget development process can have the potential to help address Connecticut’s fiscal challenges.
This policy briefing provides a quick overview of Connecticut's biennial (two-year) budget process from the governor's initial proposed budget to a final product passed by the legislature and signed by the governor.
The Connecticut General Assembly has periodically created “revenue diversions” in state statute. A “revenue diversion” is established when the General Assembly diverts a portion of revenue, which would otherwise be deposited into the General Fund, to a different fund or account. Revenue diversion statutes are explicit in the amount of revenue that is diverted, established as either a percentage of total revenue or a flat dollar amount, along with a description of what the diverted revenue will support. Once established in state statute, revenue diversions exist in perpetuity unless adjusted by the General Assembly.