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.
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.