Connecticut

Connecticut

Budget Links

FY2025 budget adjustments (proposed)
FY2024-2025 (enacted)
FY2023 budget adjustments (enacted)
FY2022-2023 (enacted)
FY2020-2021 (enacted)

Proposed Supplemental Budget - Fiscal Year 2025

During the 2023 legislative session, Connecticut enacted a biennial budget for fiscal 2024 and fiscal 2025 totaling $25.3 billion in fiscal 2024 and $26.0 billion in fiscal 2025 with general fund amounts of $22.3 billion in fiscal 2024 and $22.8 billion in fiscal 2025. On February 7, Governor Ned Lamont proposed fiscal 2025 budget adjustments. The recommended revised all funds budget for fiscal 2025 is $26.1 billion all funds, an increase of $89.2 million, or 0.3 percent, over the enacted fiscal 2025 budget and 3.1 percent over fiscal 2024. The revised recommended general fund budget for fiscal 2025 is $22.9 billion, an increase of $136.6 million, or 0.6 percent, over the enacted fiscal 2025 budget and 2.7 percent over fiscal 2024. The proposed fiscal 2025 budget provides an operating surplus of $291.0 million. The January 2024 consensus revenue forecast for the general fund is projected at $23.2 billion in fiscal 2025. The projected budget reserve balance at the end of fiscal 2025 is $4.4 billion.

Proposed Budget Highlights 

The midterm budget adjustments make additional investments in early childhood education and K-12 education while also addressing Medicaid, pensions, and other spending updates. The revised fiscal 2025 budget preserves the largest income tax cut in state history and the increase in the Earned Income Tax Credit. Recommended funding adjustments include: 

• Increasing revenues in fiscal 2025 by increasing the transfer from the prior fiscal year ($45.0 million), revising the transfer between the General Fund and Municipal Revenue Sharing Fund ($16.3 million), and suspending the transfer to the Tobacco and Health Trust Fund ($12.0 million). 
• Eliminating initial or application fees for certain occupations including educators, nurses and home childcare providers (decreasing revenues by $3.5 million). 
• Allocating an additional $43.3 million in general funds ($20.1 million) and American Rescue Plan Act (ARPA) funds ($23.2 million) to expand early childhood services. 
• Expanding health care coverage on Covered CT, resulting in general fund savings of $2.1 million in fiscal 2025 and $33.1 million when fully annualized.
• Utilizing $6.5 million in ARPA funds to erase a projected $650.0 million in medical debt for an estimated 250,000 people.
• Adding $531,000 and three positions to establish a Prescription Drug Affordability Board.
• Adjusting $91.3 million in funding to reflect program requirements due to caseload and cost changes across multiple health programs including Medicaid, Old Age Assistance, Aid to the Disabled, and Temporary Family Assistance.
• Providing $8.3 million ($5.4 million state share) for Urgent Crisis Centers serving youth experiencing a behavioral health crisis.
• Allocating $2.9 million to address chronic homelessness for individuals with severe and persistent mental illness and/or substance use issues, including $1.3 million for additional wrap-around services.
• Piloting a new supportive housing program for individuals with autism through 15 new housing vouchers.
• Utilizing $5.8 million in ARPA funding to support statewide resiliency planning and climate preparedness.
• Providing $2.5 million to support additional correction officers to address a growing number of assaults in correctional facilities. 
• Adjusting baseline funding by $15.0 million in the Department of Correction to annualize funding for projected fiscal 2024 deficiency in other expenses.
• Using $1.5 million in ARPA funding to support digital platforms that facilitate the criminal justice process.
• Utilizing $2.0 million in ARPA funding to support the Right to Counsel program, which provides no-cost legal representation to income-eligible tenants and occupants at risk of eviction or subsidy termination.
• Reducing general fund debt service by $70.3 million to reflect updated projections.
• Proposing an incentive under the state income tax to challenge New York State’s application of remote work rules, which allow New York to tax Connecticut residents when they work from home for a New York-based firm. 
• Limiting the cumulative balance in the Special Transportation Fund to 18 percent of current year appropriations, with any balance above the threshold used to pay down outstanding debt in the fund.
  

Proposed Budget Information
Fiscal Year 2025 Budget Adjustment Proposal 

Budget Presentation 

Revenue Forecast - January 2024 

State of the State Speech 

Economic Report and Revenue Forecast