Needed Investments in Higher Education, Childcare, Mental Health and Non-Profits

May 8, 2024

With the two-year $26 billion budget passed by the legislature last year remaining strong and in balance, we were able to make much needed new investments in important areas such as higher education, early childcare, mental health services and our non-profit community.

A bipartisan spending stabilization plan, utilizing federal American Rescue Plan Act (ARPA) funds, was approved this week that will ensure the historic state tax cuts and investments passed last year are protected.

HB 5523

The current state budget, which is estimated to end the 2024 fiscal year with a surplus of $256 million, includes:

  • The Largest Income Tax Cut in State History
  • Investments in Public Education
  • New supports for the IDD community
  • Expansion of Debt-Free Community College
  • A Strong and Vibrant Safety Net of Programs

This session we used remaining federal ARPA funds to provide needed support to some important priorities such as:

  • Higher Education - $160 million
  • Early Childcare - $21.8 million
  • Mental Health Services - $24 million
  • Nonprofit Providers - $50 million

In addition, when fiscal year 2024 ends on June 30, we project adding over a billion dollars into the state's robust budget reserve "Rainy Day Fund" bringing its balance to $4.7 billion, and then transferring $1.27 billion toward continuing to pay down long-term pension debt.

With the current budget in a strong financial position and new investments being made in important priorities for our residents, Connecticut is set up to both succeed today and as we look to the future.