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.

Jacqueline Rabe Thomas

Jacqueline was CT Mirror’s Education and Housing Reporter, and an original member of the CT Mirror staff, joining shortly before our January 2010 launch. Her awards include the best-of-show Theodore A. Driscoll Investigative Award from the Connecticut Society of Professional Journalists in 2019 for reporting on inadequate inmate health care, first-place for investigative reporting from the New England Newspaper and Press Association in 2020 for reporting on housing segregation, and two first-place awards from the National Education Writers Association in 2012. She was selected for a prestigious, year-long Propublica Local Reporting Network grant in 2019, exploring a range of affordable and low-income housing issues. Before joining CT Mirror, Jacqueline was a reporter, online editor and website developer for The Washington Post Co.’s Maryland newspaper chains. Jacqueline received an undergraduate degree in journalism from Bowling Green State University and a master’s in public policy from Trinity College.

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