Behind the Numbers, What’s at Stake

As Connecticut cities and towns struggle to balance budgets due to inadequate municipal aid, absorb unfunded mandates, and meet growing community needs, the numbers tell a stark story. And this is why it’s past time for a serious conversation about shared responsibility through sustainable policy.

For these very reasons, in early 2025, the Connecticut Conference of Municipalities (CCM) launched its “Do The Math” advocacy campaign. The focus is to highlight the financial pressures budget decisions and state policy place on local governments and residents. While representing Connecticut towns and cities, CCM’s initiative underscores the challenges local governments encounter when state aid doesn’t keep pace with rising costs. Simply put, it leads to increased property taxes, underfunded public services, and inadequate education funding.

Despite Connecticut’s sturdy fiscal health, CCM and municipal leaders argue that state support for local governments has not kept pace with growing budget reserves and surpluses. As emphasized by CCM’s Executive Director and CEO Joe DeLong, the state’s surpluses have not translated into adequate municipal aid, which forces local leaders into tough decisions that negatively impact residents.

A significant concern is the Education Cost Sharing (ECS) formula. An analysis by the Boston Consulting Group revealed that, in real terms, ECS funding has decreased by $407 million over the past decade. This decline has strained local budgets, forcing municipalities to atone through higher property taxes, reductions in critical services, and layoffs of critical staff.

Key issues highlighted by the “Do The Math” campaign focus on Education Funding, PILOT (Payment in Lieu of Taxes) Program, Youth Programs, Property Taxes and Mandates — to name a few — that all work to create unnecessary issues for municipal leaders, as well as affordability challenges for state residents.

CCM’s advocacy focuses on urging state leaders to reassess budget priorities and provide stable, predictable, and sufficient funding for municipalities. The argument is, the state’s consistent surpluses and full rainy-day fund present an opportunity to invest in local communities, ensuring residents receive the services they need without bearing the burden through continually increased property taxes.

The “Do The Math” campaign serves as a call to action for equitable fiscal policies that recognize the essential role of municipalities in delivering public services. By advocating for fair state funding, CCM aims to lessen the financial burdens on local governments and ensure a more balanced approach to budgeting that benefits all Connecticut residents.