Budget Cycle

Governor Submits Budget

Fiscal Year Begins
July 1
Governor Signs Budget 

Budget Links

FY2024-2025 (proposed)
FY2023 budget adjustments (enacted)
FY2022-2023 (enacted)
FY2020-2021 (enacted)
FY 2019 budget adjustments (enacted)
FY2018-2019 (enacted)

Proposed Budget - Fiscal Years 2024-2025

On February 8, Connecticut Governor Ned Lamont released his budget proposal for the fiscal 2024-2025 biennium. The budget recommends $25.04 billion in total spending in fiscal 2024, a 3.5 percent increase from fiscal 2023’s adopted level, and $25.51 billion in fiscal 2025, a 1.8 percent increase from fiscal 2024’s recommended level. General fund spending is recommended at $22.03 billion in fiscal 2024, a 0.2 percent decline from fiscal 2023, and $22.39 billion in fiscal 2025, a 1.6 percent increase from fiscal 2024. Total general fund revenues at the current rate are projected at $22.60 billion in fiscal 2024, a 1.4 percent decline from fiscal 2023’s estimated level. Net projected revenue after proposed revenue changes is $22.38 billion in fiscal 2024, a 2.3 percent decline from fiscal 2023. The budget assumes a budget reserve fund level of $4.76 billion at the end of fiscal 2024, or 21.2 percent of expenditures. Additionally, the budget proposes $433.9 million in new or revised American Rescue Plan Act (ARPA) allocations.

Proposed Budget Highlights 

The governor’s fiscal 2024-2025 proposed budget is directed at building growth and opportunity for all. The budget focuses on broad-based middle-class tax relief; creating additional housing units and making homeownership possible; training the workforce for jobs employers need; investing in K-12 education and childcare; providing sustainable support for higher education; strengthening the social safety net; and ensuring equity for all state residents. The governor also noted the budget is balanced without gimmicks and complies with all caps, including spending, revenue, volatility, and debt. Highlights of the recommended budget include:


Tax Relief

  • Total tax relief of $267.3 million in fiscal 2024 and $543.9 million in fiscal 2025
  • Reduces two tax brackets: 5.0 percent to 4.5 percent and 3.0 percent to 2.0 percent
  • Increases the Earned Income Tax Credit (EITC) from 30.5 percent to 40 percent
  • Returns the pass-through entity tax (PET) credit to 93.01 percent and makes tax optional
  • Expands the human capital investment tax credit including increasing the value of the entire tax credit from 5 percent to 10 percent of all qualifying expenses and 25 percent for childcare expenses


Housing Support

  • Expands statewide affordable housing investments by providing $300 million each year of the biennium through the capital budget, including $100 million for workforce housing


K-12 Education

  • Continues phase-in of the education cost sharing formula by providing $46 million in fiscal 2024 and $91 million in fiscal 2025
  • Provides funding of $18.4 million in fiscal 2024 and $21.7 million in fiscal 2025 to continue implementing a previous settlement regarding Hartford schools
  • $20.5 million in new ARPA investments including to help support staffing issues


Early Childhood

  • $14.2 million in fiscal 2024 and $53.3 million in fiscal 2025 to support increases of 10 percent per year for licensed providers and 5 percent per year for unlicensed providers
  • $15.5 million in fiscal 2025 to increase rates for pre-k slots
  • $35 million in ARPA funding to support additional enrollment in Care4Kids program



  • $30 million in fiscal 2024 and $9 million in fiscal 2025 in additional support for workforce development initiatives
  • Moves the Office of Workforce Strategy from under the governor’s office to a stand-alone, separately budgeted agency


Higher Education

  • Restructures fringe benefit funding to position the institutions to be more competitive
  • Combines UConn and UConn Health into a single budgeted agency
  • Provides temporary one-time operating support of $256.8 million over fiscal 2024-2025
  • Sustains current level of funding for debt-free college programs at community college


Health Equity and Affordability

  • Series of initiatives that address health equity, healthcare affordability, minimize healthcare disruptions; erase medical debt; further benchmarking and affordability activities; and provide specialized wheelchairs for state parks


Strengthening the Social Safety Net

  • Provides funding to help with caseload growth and other needs with the Department of Developmental Services and the Department of Mental Health and Addiction Services
  • Also increases earned income disregard under Temporary Family Assistance (TFA); doubles asset limits under TFA and State Administered General Assistance; provides funding for flexible client support for those facing immediate economic hardship; supports anticipated costs of 988 Suicide and Crisis Lifeline; and helps strengthen and stabilize residential care homes


Municipal Aid

  • Consolidates funds in the Municipal Revenue Sharing Fund to reduce complexity


Criminal Justice and Public Safety

  • Initiatives include filling the gap in federal Victims of Crime Act funding; applying a public health approach to stopping gun violence; efforts to recruit and retain state troopers; providing real-time data for law enforcement; judicial pay raises; right sizing the correction system; and continued implementation of Clean Slate laws


Other Initiatives and Proposals

  • Other proposals are directed at environment and energy leadership; banking and insurance protection; information technology optimization; creating a safe and equitable adult-use cannabis market; and supporting bus services and rail transit