Connecticut Boosts School Funding, Yet Disparities Persist
Connecticut’s state government is making a substantial investment in education this fiscal year, allocating nearly $2.5 billion through the Education Cost Sharing (ECS) grant. This funding represents over 10% of the state’s General Fund. Despite this significant figure, critics argue that the program has not kept pace with inflation, exacerbating funding disparities between affluent and disadvantaged communities.
Understanding the ECS Formula
The ECS formula aims to promote equitable school funding across Connecticut, although it has not achieved full parity. The foundation level establishes that the average cost to educate a student is approximately $11,525. Adjustments to this figure are made based on factors such as the number of students from low-income households, those eligible for free or reduced-price meals, and students for whom English is a second language. Additionally, the formula considers local wealth by examining both taxable property values and resident income.
Historically, Connecticut’s funding model relied heavily on local property taxes, leaving significant funding gaps between its wealthiest and poorest towns. A landmark ruling by the Connecticut Supreme Court in 1977 (Horton v. Meskill) highlighted the inadequacies of this system, stating it violated the right to education guaranteed by the state Constitution. Although the court mandated a more equitable funding approach, it was left to the legislature to enact changes.
In response to the ruling, the state introduced the Guaranteed Tax Base formula in 1975, which was later transformed into the ECS system in 1988. Despite these efforts, neither program has ensured uniform funding across districts.
Challenges to Funding Equality
Connecticut’s pension debt has significantly influenced the ECS formula and overall education funding. Successive administrations since the late 1930s have struggled to adequately fund pension obligations, resulting in billions of dollars in debt. By the 1990s, increased mandatory pension contributions began consuming resources that could have otherwise supported education.
The situation began to stabilize in 2017 when officials initiated refinancing of pension debt, extending payment plans and shifting some financial burdens onto future taxpayers. That same year, lawmakers implemented budget caps to enhance surpluses, which could be allocated to reduce pension liabilities and bolster the ECS. Despite these measures, pension costs have continued to dominate the state budget.
The ECS program has increased by approximately $450 million over the past eight years, yet critics contend that this growth is insufficient to address decades of stagnant funding. The School and State Finance Project estimates that if the ECS formula had been adjusted for inflation, it would have distributed an additional $99 million this fiscal year alone.
Local leaders, represented by the Connecticut Conference of Municipalities (CCM), have voiced concerns about the state’s approach to education funding. CCM Executive Director Joe DeLong emphasized the need for sustainable funding solutions rather than political rhetoric. “Local leaders are being asked to do more with less, and the state’s leadership needs to be honest about the challenges our communities face,” he stated.
Governor Ned Lamont defended his administration’s efforts to enhance both educational and general aid to municipalities while addressing the pension debt crisis. He highlighted the importance of municipal aid for maintaining vibrant communities and providing children with educational opportunities.
Impact of ‘Hold Harmless’ Policy
Another contentious issue surrounding the ECS program is the “hold harmless” policy, which ensures that no district receives less funding than the previous year. This approach has been tested recently, as some legislators feared it would lead to inequality in funding distributions. Governor Lamont recommended a fiscal strategy that would increase the ECS by over $80 million for the 2025-26 fiscal year, potentially resulting in more than 80 communities receiving reduced funding.
State Senator Cathy Osten, co-chair of the Appropriations Committee, advocated for maintaining the hold harmless provision, arguing that the formula’s flaws could disproportionately harm rural and economically disadvantaged districts. Many of these communities face declining student populations but cannot easily reduce costs through class consolidation or school closures.
Ultimately, legislators decided to extend the hold harmless provision for two additional fiscal years, but discussions about its future are expected to resume soon. As Connecticut continues to navigate the complexities of educational funding, the need for equitable solutions remains critical for the state’s diverse communities.
The challenges of achieving fair and adequate funding for education in Connecticut illustrate a systemic issue that has persisted for decades. As state officials grapple with financial constraints and competing priorities, the quest for a more equitable funding model continues.
