(HARTFORD, CT) – Governor Ned Lamont today announced that the state budget proposal he will present to the Connecticut General Assembly later this week will include an increase in funding for towns and cities to provide special education services for students with disabilities, as well as the creation of a new program that incentivizes municipalities to provide special education programming to students in-district or on a regional basis.
“Over the last several years, special education services have been one of the largest cost drivers for school districts due to the increase in the number of students eligible for special education services and the rapid increase in the cost of those services, particularly for students outplaced in approved special education programs,” Governor Lamont said. “I know that special ed is a major expense when developing town and city budgets and can be unpredictable from year to year. This increased investment supports our municipalities and supports students with special needs.”
For fiscal year 2027, the governor is recommending to the legislature that the Excess Cost Grant, which subsidizes high-cost placements for students with the greatest needs, be increased by an additional $40 million.
Additionally, the governor is asking the legislature to establish the High-Quality Special Education Incentive Grant program. Administered by the Connecticut State Department of Education, this competitive grant program will increase the capacity of school districts to provide high-quality special education programming in-district and regionally, reducing reliance on out-of-district placements and meeting students’ needs as identified by their Individual Education Program in the least restrictive environment. For fiscal year 2027, the governor is proposing to allocate $10 million from the General Fund and $4 million in bond funds to support it.
The State Department of Education is also currently undergoing a study to analyze other states’ annual special education rate-setting for providers of special education services, including placements in out-of-district programs, which could result in additional recommendations by the department. Initiated by Education Commissioner Charlene M. Russell-Tucker, this initiative aims to address the financial unpredictability associated with these specialized services and help districts better manage their budgets.
“By incentivizing districts to provide high-quality special education services right within their communities through new and innovative partnerships, by devoting additional funding to the Excess Cost Grant, and by addressing special education tuition costs, this proposal will directly tackle the rising costs of special education services,” Commissioner Russell-Tucker said. “It will assist our schools in building stronger educational opportunities for the 91,847 students who are receiving special education services across Connecticut.”
Governor Lamont is scheduled to deliver his annual budget address to a joint session of the General Assembly on Wednesday, February 5, 2025. Documents containing the full details of his biennial budget proposal and other legislative proposals will be filed on that date.