Education Cost Sharing (ECS) Town Wealth
Education Cost Sharing (ECS) Town Wealth
| I. Overview | ||||
| Pursuant to Section 10-262f(26) of the Connecticut General Statutes, ECS Town Wealth is determined based on a town's property tax base and the income of its residents. The property tax base is measured per student and per person. It is used because it is the form of wealth taxed by Connecticut's towns. Income is measured on a per capita and a median household basis. Per Capita Income (PCI) and Median Household Income (MHI) are used because the income from which taxes are paid has an important affect on town taxing capacity. These factors are then averaged and combined as shown below. ENGL is the Equalized Net Grand List which represents the value of taxable real and personal property (net grand list) at 100 percent fair market value. ECS uses a three-year average of ENGL. The use of an average helps to stabilize town wealth, especially for those towns experiencing significant increases or decreases in a given year, particularly during a year of revaluation. | ||||
| ENGL | = | Equalized Net Grand List (3-year average) (CT Office of Policy and Management) | ||
| PCI | = | Per Capita Income (U.S. Bureau of the Census) | ||
| HPCI | = | Highest Town PCI | ||
| MHI | = | Median Household Income (U.S. Bureau of the Census) | ||
| HMHI | = | Highest Town MHI | ||
| POP | = | Total Population (U.S. Bureau of the Census) | ||
| Need | = | Need Students (CT Department of Education) | ||
| Income Adjuster =
PCI
+ MHI HPCI HMHI 2 |
| Town Wealth
=
ENGL +
ENGL
x Income Adjuster Need POP 2 |
A detailed explanation of the latest ECS formula as well as the accompanying data elements are available at http://www.state.ct.us/sde/dgm/report1/merecsgd.pdf . |
| II. Data Element Source Year(s) Used in ECS Wealth | |||||
| ECS ENGL | Per Capita Income (PCI) | Median Household Income (MHI) | Population | Need Students | |
|---|---|---|---|---|---|
| ECS Wealth 1997-1998 | 1992/93/94 | 1989 | 1989 | 1994 | 10/1996 |
| ECS Wealth 1998-1999 | 1993/94/95 | 1989 | 1989 | 1994 | 10/1997 |
| ECS Wealth 1999-2000 | 1994/95/96 | 1989 | 1989 | 1996 | 10/1998 |
| ECS Wealth 2000-2001 | 1995/96/97 | 1989 | 1989 | 1996 | 10/1999 |
| ECS Wealth 2001-2002 | 1996/97/98 | 1989 | 1989 | 1998 | 10/2000 |
| ECS Wealth 2002-2003 | 1997/98/99 | 1989 | 1989 | 1999 | 10/2001 |
| ECS Wealth 2003-2004 | 1998/99/2000 | 1989 | 1989 | 2000 | 10/2002 |
| ECS Wealth 2004-2005 | 1999/2000/2001 | 1999 | 1999 | 2000 | 10/2003 |
| ECS Wealth 2005-2006 | 2000/2001/2002 | 1999 | 1999 | 2002 | 10/2004 |
| ECS Wealth 2006-2007 | 2001/2002/2003 | 1999 | 1999 | 2003 | 10/2005 |
Any questions concerning this information should be directed to Kevin Chambers at (860) 713-6455 or kevin.chambers@ct.gov | ||||