Connecticut Passes Major School Funding Increase, but Educators Say More Work Remains
Why It Matters
Connecticut has enacted one of the largest single-year increases in state education funding in its history, directing hundreds of millions of dollars to public schools across the state. The measure offers significant relief to high-need districts that have spent more than a decade absorbing the costs of a stalled funding formula — but education advocates warn the legislation addresses only part of the problem.
What Happened
The Connecticut legislature passed a budget that includes a roughly $170 million permanent increase to the state’s Education Cost Sharing (ECS) formula, the primary mechanism used to distribute state dollars to public schools. The increase marks the first time in 13 years that the per-student foundation amount — the base figure the formula uses to determine what each child’s education costs the state — has been raised.
In addition to the ECS boost, cities including Hartford, Bridgeport, and New Haven will share in $100 million in one-time aid directed to municipalities under the greatest fiscal strain, much of which is expected to flow toward local school budgets. These cities have borne a disproportionate share of the burden from years of frozen funding, seeing programs cut and positions go unfilled as costs outpaced state support.
By the Numbers
- $170 million — permanent annual increase to the ECS funding formula
- $100 million — one-time supplemental aid for high-need municipalities
- 13 years — the length of time Connecticut’s per-student foundation amount went without an increase
- 15% — the share of owed dollars districts are currently receiving through the SEED grant, a state program designed to support students with disabilities
What the Funding Does — and Doesn’t — Fix
Educators who testified and organized in support of the funding increase have welcomed the legislative action as meaningful progress. However, those same advocates are drawing a clear line between what this budget accomplishes and what still needs to be done.
A key concern is sustainability. There is currently no mechanism tying the foundation amount to inflation, meaning the formula could once again fall behind rising costs if the legislature does not act. Education advocates are calling on lawmakers to index the per-student amount to inflation when the General Assembly reconvenes, to prevent another multi-year erosion of purchasing power.
The budget also left largely unresolved a mounting crisis in special education funding. Connecticut operates two programs designed to reimburse districts for the added costs of serving students with disabilities: the Excess Cost Grant and the SEED grant. Both are underfunded. The SEED grant gap is especially acute — districts are receiving just 15 cents on the dollar of what the program is supposed to provide.
Under federal and state law, school districts are required to serve every student with a disability regardless of whether the state fully reimburses those costs. When reimbursements fall short, districts absorb the difference — often at the expense of services for the students who need them most. Advocates are pushing for full SEED funding and reform of the Excess Cost Grant to be prioritized in the next legislative session. Separately, policymakers in several states are also weighing school schedule reforms, including later start times, as part of broader student well-being conversations.
Teacher Compensation and Retention
Beyond immediate budget relief, the funding increase opens a longer-term conversation about teacher pay structures. Connecticut’s current compensation model does not financially incentivize experienced or highly skilled teachers to work in the state’s most under-resourced schools and communities. Education stakeholders are pointing to innovative pay models that would reward educators serving high-need schools and recognize specialized expertise — changes that could help recruit and retain strong teachers in the places that need them most. School phone policies and other classroom environment issues are also part of the broader policy conversation around improving educational conditions statewide.
What’s Next
The immediate priority for education advocates is ensuring the one-time funding and permanent ECS increase translate into concrete improvements at the district level — restored programs, competitive salaries, and filled vacancies. Looking ahead to the next legislative session, the General Assembly will face calls to pass inflation indexing for the foundation amount, fully fund the SEED grant, and reform the Excess Cost Grant. Whether Connecticut builds on this year’s gains or allows the formula to stagnate again will depend on whether lawmakers treat this budget as a floor rather than a ceiling.