During its 2025 regular legislative session, the Connecticut General Assembly made a number of changes to how the State funds special education, including the creation of a new formulaic grant to support special education services.
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.
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.