Budget Cycle

Governor Submits Budget

Fiscal Year Begins
July 1
Governor Signs Budget 

Budget Links

FY2023 budget adjustments (enacted)
FY2023 budget adjustments (proposed)
FY2022-2023 (enacted)
FY2020-2021 (enacted)
FY 2019 budget adjustments (enacted)
FY2018-2019 (enacted)

Enacted Supplemental Budget – Fiscal Years 2022-2023

Connecticut Governor Ned Lamont signed the state’s fiscal 2023 budget adjustments on May 9. The budget totals $24.2 billion with general funding spending of $22.1 billion, representing a growth rate of 6.4 percent over fiscal 2022 for all funds and 6.5 percent for general funds. The budget includes fiscal 2023 total revenues of $24.8 billion and general fund revenues of $22.4 billion. The budget leaves much of its surplus unspent enabling the state to make an $3.5 billion payment on its unfunded pension debt. Highlights of the budget include more than $660 million in tax relief and significant new investments in childcare and social services. Specifically, it creates for one year a new $250 per-child tax credit for lower and middle earning families and expands for one year eligibility for the Earned Income Tax Credit. The budget also includes a 25-cent gas tax cut and continues to fund free bus service until December. Other highlights of the budget include efforts aimed at cutting crime; creating a sustainable state employee workforce; investing in housing; protecting the environment; taking care of the most vulnerable residents; and added investments in healthcare. Additionally, the budget includes $1.8 billion in new allocations from the American Rescue Plan Act (ARPA) for a number of grant programs and initiatives.

Proposed Supplemental Budget - Fiscal Years 2022-2023

During the 2021 legislative session, Connecticut enacted a biennial budget for fiscal 2022 and fiscal 2023 totaling $22.7 billion in fiscal 2022 and $23.6 billion in fiscal 2023 with general fund amounts of $20.8 billion in fiscal 2022 and $21.7 billion for fiscal 2023. On February 9, Connecticut Governor Ned Lamont proposed fiscal 2023 budget adjustments. The recommended revised budget for fiscal 2023 at $24.2 billion is 2.4 percent above the enacted fiscal 2023 level with the general fund at $22.1 billion, 2.5 percent above the enacted fiscal 2023 level. The proposed fiscal 2023 level provides a $296.4 million operating surplus and is $16.7 million below available revenue. The January 2022 consensus revenue forecast is projected at $22.7 billion in fiscal 2023. Consensus revenue adjustments in November and January increased available resources by $873 million. The projected budget reserve balance at the end of fiscal 2023 is $4.4 billion.

Proposed Budget Highlights 

Major priorities in the proposed fiscal 2023 budget adjustment include tax relief, strengthening behavioral health care, and workforce development. Funding recommendations include: 

  • Expanding eligibility for the property tax credit.
  • Eliminating the income tax on retirement income for most households.
  • Providing tax relief by lowering local car taxes.
  • Accelerating by 3 years from 2025 to 2022 the phase-in of pensions and annuities exemption under the income tax.
  • Including nearly $160 million in additional funding for mental health services, with $26.4 million to expand access to mobile crisis units for adults and children. 
  • Adding $65 million for tuition assistance and aid to higher education institutions to boost enrollment through tuition assistance. 
  • Investing in broadband and infrastructure projects including rail service, roads and bridges, and clean wind energy.
  • $19.4 million for preventing and reducing repeat crime.
  • Developing the state’s workforce including through expanding the CareerConnect program with a focus on trade schools, apprentice programs, and tuition-free certificate programs.
  • $174.4 million in state funds to help fund the American Rescue Plan Act (ARPA) home and community-based services reinvestment plan to support workforce stability, informal caregiver support, assistive technology/smart home technology, home adaptations, and self-direction.
  • $165.0 million in new general obligation bond authorizations to increase authorizations from $1.9 billion to $2.1 billion.