Gov. Ned Lamont signed into law the FY 2027 state budget on Tuesday. The plan was approved this month by a significant majority of the state’s General Assembly.
HARTFORD, Conn. — Connecticut’s Fiscal Year 2027 revised budget has officially been signed into law by Gov. Ned Lamont.
The $28.6 billion plan boosts funding for towns, education and childcare without increasing taxes. It also uses revenue surpluses to pay off substantial debt.
Before reaching Lamont’s desk, the budget earned overwhelming bipartisan support in the Connecticut General Assembly earlier this month.
It was approved by the state House of Representatives by a vote of 127 to 31. It also passed through the state Senate, earning a 30 to 6 vote in favor.
After signing the budget into law on Tuesday, Lamont issued a statement.
He claims the plan is centered around responsibly delivering more educational funding and municipal aid while keeping the state financially stable.
Lamont notes that the budget maintains the historic middle-class income tax cuts that his administration previously enacted while preserving the newly increased EITC rates that have drastically cut down income taxes for working families.
He adds that the plan enables most seniors to keep receiving income tax exemptions and pensions on Social Security, while it keeps the cap on the motor vehicle property taxes that his administration adopted.
“And it does this while continuing to fund our more recently enacted programs to support working families, such as Paid Family and Medical Leave and Early Childhood Education Endowment, which is on its way to delivering universal pre-K so that every child of every background has access to a good education right from the start,” Lamont said.
The governor explains in his statement that before he came into office, Connecticut was experiencing year after year of deficits and instability.
He feels strongly that his administration has changed the trend.
“Over these last several years, our administration has produced balanced budgets that are built to last, bringing sustainability to our state that we so desperately needed,” Lamont said.
Lamont ends his statement by emphasizing that the budget has been passed on time and with bipartisan collaboration.
“It was overwhelming approved by legislators, supported by municipal leaders, backed by education advocates, applauded by community providers and has been endorsed by so many other groups statewide,” Lamont said.
When it comes to education, the budget provides $193 in supplemental grants for towns and cities, including $162.2 million in direct aid to municipalities, $8.7 million for charter schools, $8.3 million for magnet schools and $800,000 for vocational agriculture programs.
The budget also includes Lamont’s priority investments in children’s education, including $12 million for universal free school breakfast to ensure all $500,000 Connecticut students have access to healthy meal to start the school day; $5 million to expand impactful mental and behavioral supports in schools; $2 million to fund 75 teacher apprentices per year; and $2 million for a new literacy coaches program.
The budget further invests $300 million in the Early Childhood Education Endowment to support sustained investments in the early care and education system.
Another $30 million will go toward General Obligation Bonding for the Connecticut Higher Education Supplemental Loan Authority to create a new alternative to the Grad Plus Subsidized Loan Program, which was eliminated by President Donald Trump.
The budget allots more than $100 million in one-time assistance for towns and cities to help lower property taxes, while the state is expected to make additional pension payments under this budget of over $1 billion in both FY 2026 and FY 2027.
Meanwhile, the Federal Cuts Response Fund is strengthened by the budget, which provides it with $50 million to make sure Connecticut stays well-positioned to address federal policy and funding challenges.
Another $3.34 million will go to the Department of Children and Families to launch several new programs and services designed to help caregivers cover child-care costs, postsecondary education assistance, paid social worker internship and mentorship programs and mandatory employee training programs.
The budget also designates $892,000 to the Department of Public Health to pilot free flu vaccines to uninsured and under-insured adult residents. This is meant to reduce hospitalization and healthcare costs.
In the Department of Mental Health and Addiction Services, a total of $3.54 million will be spent making sure enough resources are available to allow for timely discharge from state hospitals, while $775,000 will broaden suicide prevention and postvention services through Regional Behavioral Health Action Organizations.
The Department of Veterans will also receive $1 million for free bus passes and $500,000 to support veteran housing and services as the skilled nursing and other residential facilities in Rocky Hill.
The budget also sets aside $156 million to support major rate changes for human services providers, as an effort is being made to streamline reporting, standardize processes and promote administrative efficiencies and improved outcomes.
The budget further reflects a five-year agreement with hospitals that will help stabilize the industry.
Another $500,000 is going to the Department of Housing to begin numerous efforts that were recently approved.
An additional $3.5 million will be used to help U.S. military veterans use services like CTtransit and CTfastrak at no cost.
Then, nearly $10 million will be sent to the Department of Emergency Services and Public Protection to address the costs of modernizing equipment and technology used by Connecticut State Police personnel.
The budget also provides $1 million to make permanent its first-in-the-country interagency efforts to link the state’s Medicaid administrative services organization with the Department of Correction, Office of Policy Management and Department of Social Services.
On a similar note, $9.15 million across state government will facilitate implementation of a new mandate requiring certain health coverage for youth in the care and custody of the state’s carceral settings.
The budget also entails several revenue adjustments.
For instance, it will lower the cost of health insurance by creating a new tax for small businesses, encouraging them to offer Individual Coverage Health Reimbursement Arrangements through Access Health CT’s BusinessPlus platform.
The budget also expands eligible items during Sales Tax-Free Week from $100 to $300 and eliminates taxes on school supplies, returning about $6 million to residents.
Its Caregiver Tax Credit for people who pay out-of-pocket costs to support activities of daily living of adult family members will help people continue to live independently if they desire.
The budget further supports knowledge-based industries, encouraging research and development, and it simplified the current tax on cannabis to a 10.75% excise tax.
Sports also entered the discussion, as the budget provides tax credits that will ensure UConn’s men’s and women’s basketball teams and ice hockey teams continue playing games in Hartford at PeoplesBank Arena for the next 20 years.
Lastly, Lamont has permitted an investment of $813.7 million stemming from volatile revenues to be used to support affordability and growth statewide.
With this money, Lamont authorized investments including $183 million for schools, $100 million for municipalities, $80 million to address Medicaid deficiencies and $50 million to be added to the Federal Response Fund.
Dalton Zbierski is a story desk editor and writer at FOX61 News. He can be reached at [email protected].
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