The state budget signed into law Tuesday increases state funding for cities and towns by $23.5 million in the 2015-16 fiscal year, which begins today.
Middletown will see its funding increase most with an additional $3.9 million; eight other communities will get a more than $1 million boost in state aid. Several municipalities will get a small cut in state aid, though state funding for Hartford is reduced by $1.7 million and New Haven by $612,000, the nonpartisan Office of Fiscal Analysis reports.
Overall, Connecticut’s cities and towns will receive $2.5 billion next year from the state, a major source of revenue that affects property-tax rates and services provided in many cities and towns. Read more about the changes in municipal aid here.
The primary sources of state aid to towns are:
- PILOT grants: There are two kinds of grants to reimburse towns for some lost tax revenue from tax-exempt property, one for state property and the other for property owned by non-profits, such as hospitals and colleges. PILOT is an acronym for Payment in Lieu of Taxes.
- Pequot Grants: The state shares with municipalities a portion of the revenue it receives from slot machines at the tribal casinos.
- School grants: The state helps towns pay for school transportation and adult education.
- Education Cost Sharing: This is the principal grant the state provides to help towns run their school systems. It is by far the largest grant towns receive, accounting for $2.06 billion of the $2.52 billion in local aid.
- Town Aid Road: This grant helps pay for maintenance and snow removal on local roads.
- Local Capital Improvement Program (LOCIP): This helps towns pay for capital improvements, such as sidewalks and bridges.
- Municipal Projects: This is a catch-all category for local construction projects.
Hover over your town to see how much more or less your town is set to receive in fiscal 2016.