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HB 5374

AN ACT CONCERNING THE INCLUSION OF A HOLD HARMLESS PROVISION IN THE EDUCATION COST-SHARING GRANT FORMULA.

2025 Regular Session Introduced by Tammy Nuccio

Connecticut bill adds floor protection to school funding formula, preventing districts from receiving less state aid year-to-year despite formula changes.

REF. TO JOINT COMM. ON Education
#educationequalization(educationcostsharing)
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Bill Summary · HB 5374

Legislative bill overview

HB 5374 proposes adding a "hold harmless" provision to Connecticut's Education Cost-Sharing (ECS) grant formula, which distributes state education funding to local school districts. A hold harmless clause would prevent districts from receiving less state aid than they received in the previous year, regardless of changes in the formula's calculation methodology. This protects districts from sudden funding reductions due to formula adjustments.

Why is this important

School districts rely on stable, predictable funding to maintain educational services, staff, and infrastructure. Without hold harmless protections, formula changes could cause sharp funding cuts that force districts to reduce programs or raise local property taxes. This is particularly significant for Connecticut districts experiencing declining enrollment or changing demographic factors that might reduce their calculated need under revised formulas.

Potential points of contention

  • Fiscal cost to the state: Hold harmless provisions lock in funding levels, potentially increasing overall state education spending and limiting flexibility in budget constraints
  • Formula reform incentives: By guaranteeing baseline funding, the provision may reduce pressure on districts to improve efficiency or adapt to demographic changes, and may delay necessary updates to the funding formula itself
  • Equity concerns: Protecting established funding levels could perpetuate historical inequities between wealthy and under-resourced districts if the underlying formula disparities aren't simultaneously addressed

Compiled from official sources — confirm details with the bill’s official record.

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