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State Budget Review
FY 23 looks a lot like FY 22 with few exceptions
Reviewing the budget proposals, there are many areas with zeros – towns and cities shouldn’t expect to see any more money, but there won’t be any reductions either. Except for a few key areas, municipalities can expect Fiscal Year 2023 to look at lot like Fiscal Year 2022.
Municipal Aid, comprising of over $3.4 billion to towns and cities in FY 22 will likely see a small increase for FY 23.
Here’s how it breaks down:
For education aid, the law essentially mirrors Governor Lamont’s proposal, with the Appropriations Committee proposal providing some additional funding for adult and bilingual education.
In comparison to FY 22 education aid, the budget continues the phase-in for increases in Education Cost Sharing. An additional $39.6 million would be added to ECS over FY 22 funding.
The FY 23 budget provides significant increases in Magnet Schools and Open Choice Programs.
The overall change for Education Aid under the Appropriations Committee proposal is just 2.5, or $67 million, versus FY 22.
And finally, for non-education aid, that figure is a 14.4% increase over last year. That number is misleading, however, as $100 million of the non-education aid would come in the form of a reimbursement for revenue lost due to the cap on motor vehicle property taxes. The budget reduces that cap from the current 45 mills to 32.46 mills. The Governor had proposed a cap of 29 mills and a corresponding reimbursement of $160 million.
Aside from some minor adjustments and the car tax reimbursement, most non-education funding remains at FY 22 levels, though additional PILOT funding is provided.
