Historical Connecticut budget and finance information

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The historical Connecticut budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information, from several different fiscal years, as it was presented on Ballotpedia in prior calendar years. For more current information regarding Connecticut's budget and finances, click here.

As published 2016

Connecticut budget and finances

General information

Budget calendar: Biennial

Fiscal year: 2017

State credit rating: AA (as of 2014)

Current governor: Dan Malloy

Financial figures

Total spending (state and federal funds): $27.7 billion (estimated for 2015)

Per capita spending: $7,719.82 (estimated for 2015)

Total state tax collections: $15.9 billion (2014)

Per capita tax collections: $4,433.60 (2014)

State debt: $112.4 billion (as of 2014)

Per capita state debt: $31,298 (as of 2014)

State budget and finance pages • Total state expenditures • State debt • Tax policy in Connecticut

In Connecticut, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

Between fiscal years 2014 and 2015, total government spending in Connecticut increased by approximately $1.4 billion—from $26.3 billion in fiscal year 2014 to an estimated $27.7 billion in 2015. This represents a 5.15-percent increase.

In Connecticut in fiscal year 2014, 52.7 percent of total tax revenues came from income taxes. Sales taxes and gross receipts accounted for 42.6 percent of total state tax collections.

Education accounted for 24.8 percent of state expenditures in fiscal year 2015, while 23.2 percent went to Medicaid.

The Connecticut state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Revenues

2014 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.

Compared to neighboring states, Connecticut had the highest state tax collections per capita, at $4,434.

State tax collections by source ($ in thousands), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes	Total	2013 population	Per capita collections
Connecticut	N/A	$6,782,404	$433,024	$8,399,960	$322,354	$15,937,742	3,594,762	$4,434
Maine	$35,755	$1,911,398	$254,251	$1,597,038	$48,739	$3,847,181	1,330,256	$2,892
Massachusetts	$3,433	$7,933,030	$1,012,557	$15,440,841	$845,865	$25,235,726	6,755,124	$3,736
New Hampshire	$383,126	$877,035	$280,011	$635,590	$106,745	$2,282,507	1,327,996	$1,719
Rhode Island	$2,591	$1,566,191	$132,146	$1,208,517	$56,530	$2,965,975	1,054,907	$2,812
United States	$14,232,835	$411,414,175	$51,120,024	$357,104,785	$31,880,270	$865,752,089	318,907,401	$2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Connecticut tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 52.7 percent of Connecticut's total state tax collections came from income taxes.

State tax collections by source (as percentages), 2014
State	Property taxes	Sales and gross receipts	Licenses	Income taxes	Other taxes
Connecticut	N/A	42.6%	2.7%	52.7%	2.0%
Maine	0.9%	49.7%	6.6%	41.5%	1.3%
Massachusetts	0.0%	31.4%	4.0%	61.2%	3.4%
New Hampshire	16.8%	38.4%	12.3%	27.8%	4.7%
Rhode Island	0.1%	52.8%	4.5%	40.7%	1.9%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.

The table below notes what share of Connecticut’s general revenues came from the federal government in 2013. That year, Connecticut received approximately $5.9 billion in federal aid, 23.5 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,654 in federal aid per capita. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2013
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenues	Ranking (by % of general revenues)	Est. 2013 population	Aid per capita
Connecticut	$5,949,159	23.4%	46	3,596,080	$1,654
Maine	$2,821,145	35.3%	10	1,328,302	$2,124
Massachusetts	$13,233,244	28.7%	32	6,692,824	$1,977
New Hampshire	$1,659,853	27.1%	38	1,323,459	$1,254
Rhode Island	$2,331,473	33.6%	18	1,051,511	$2,217
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016 United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

Spending

Estimated 2015 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

Connecticut's total estimated government spending in fiscal year 2015 was $27.7 billion, which was the second highest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Connecticut	$21,741	$5,980	$27,721	3,590,886	$7,719.82
Maine	$5,189	$2,422	$7,611	1,329,328	$5,725.45
Massachusetts	$45,535	$9,435	$54,970	6,794,422	$8,090.46
New Hampshire	$3,444	$1,944	$5,388	1,330,608	$4,049.28
Rhode Island	$5,997	$2,820	$8,817	1,056,298	$8,347.08
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

Spending by function

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Connecticut can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In fiscal year 2014, Medicaid accounted for 23.2 percent of Connecticut's total expenditures.

State spending by function as a percent of total expenditures, FY 2014
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
Connecticut	14.2%	10.6%	1.3%	23.2%	2.6%	9.5%	38.6%
Maine	17.0%	3.5%	2.1%	34.4%	2.0%	7.8%	33.2%
Massachusetts	12.0%	10.4%	2.2%	21.4%	2.4%	7.7%	44.0%
New Hampshire	22.2%	2.5%	1.5%	26.8%	2.0%	9.8%	35.2%
Rhode Island	13.4%	12.0%	1.2%	24.8%	2.3%	6.3%	39.9%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2010 and 2014, the share of the Connecticut state budget spent on K-12 education decreased from 20.1 percent in 2010 to 14.2 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2010 to 2014 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2014	14.2%	10.6%	1.3%	23.2%	2.6%	9.5%	38.6%
2013	14.1%	10.6%	1.4%	21.8%	2.3%	9.7%	40.2%
2012	13.9%	10.3%	1.4%	21.4%	2.5%	10.0%	40.6%
2011	14.2%	10.2%	1.6%	21.6%	2.6%	11.7%	38.2%
2010	20.1%	13.9%	2.5%	25.4%	3.4%	9.5%	25.2%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Fiscal year budgets

See also: Historical Connecticut budget and finance information

See budget bill: HB 7061

Governor Dannel P. Malloy announced his 2016-2017 biennium budget proposal on February 18, 2015. State spending was proposed to increase by 3.3 percent in fiscal year 2016 and an additional 3.1 percent in fiscal year 2017. The governor's plan proposed major investments in transportation, including a 30-year $100 billion transit plan that would improve the state's highways. Also included was a sales tax reduction that would have saved taxpayers $225 million over two years.

On June 30, 2015, Governor Malloy signed the state's biennium budget into law. Included in the budget were spending increases of 3.9 percent in fiscal year 2016 and another 3 percent increase in fiscal year 2017. The budget rolled back previous tax increases that impacted the state's business community. The budget did include the state's largest-ever investment in transportation, which featured an increase of about $2.8 billion over five years on infrastructure spending.

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Connecticut had a state debt of approximately $112.4 billion. Its state debt per capita was $31,298. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Connecticut	$112,372,072,000	$31,298	3
Maine	$16,717,250,000	$12,577	35
Massachusetts	$129,550,263,000	$19,493	12
New Hampshire	$18,425,567,000	$13,951	27
Rhode Island	$18,863,153,000	$17,960	16
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Taxpayer burden

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees. If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Connecticut ranked 2nd worst in the country in “taxpayer burden.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Connecticut’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $48.3 billion in promised retirement benefits were unfunded, but only $10.5 billion of these liabilities were reported on Connecticut’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a shortfall of $62.1 billion, or a taxpayer burden of $48,600.

Public pensions

See also: Connecticut public pensions and Connecticut public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Connecticut's state-administered pension plans decreased from 56.6 percent to 49.1 percent. The state paid 100 percent of its annual required contribution, and as of fiscal year 2012, the pension system's unfunded accrued liability totaled $24.4 billion. This amounted to $6,922 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for Connecticut and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Connecticut	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Maine	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA
Massachusetts	AA+	AA+	AA+	AA	AA	AA	AA	AA	AA	AA	AA-
New Hampshire	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Rhode Island	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Economic indicators

See also: Economic indicators by state

Connecticut's GDP increased by 0.6 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.

Connecticut and its neighboring states all had an above average median annual household income between 2011 and 2013. However, Connecticut had the greatest percentage of its population that earned incomes at least 400 percent above the federal poverty level. In September 2014, Connecticut's unemployment rate was 6.4 percent, 0.5 percentage points above the nationwide rate.

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Connecticut	11%	13%	26%	50%	$67,807	7.7%	6.4%	$249,251
Massachusetts	12%	15%	24%	49%	$64,555	7.2%	6%	$446,323
New Hampshire	9%	13%	29%	49%	$69,888	5.2%	4.3%	$67,848
Rhode Island	14%	20%	25%	42%	$55,158	9.5%	7.6%	$53,184
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

Budget process

State documents and agenciesBelow are links to official Connecticut budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office. Connecticut CAFR Connecticut budget agency

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies in July.
2. State agencies submit their budget requests to the governor in September.
3. The governor submits his or her proposed budget to the state legislature in February.
4. The legislature adopts a budget in May or June. A simple majority is required to pass a budget. The fiscal year begins on July 1.

Connecticut is one of 44 states in which the governor has line item veto authority.

The governor is legally required to submit a balanced budget. Likewise, the legislature must adopt a balanced budget.

Agencies, offices, and committees

There is only one standing committee in the Connecticut General Assembly that deals with budget and finance matters:

1. Finance, Revenue and Bonding Committee, Connecticut General Assembly

The Connecticut Comptroller acts as the state's accountant, managing accounts payable, preparing financial reports, and monitoring the finances of state agencies. The comptroller is elected ever four years in midterm election years and is a partisan office.

The Connecticut Treasurer acts as the state's chief financial officer, overseeing state funds and investments and maintaining unclaimed property. The treasurer is elected in partisan elections and does not have a term limit.

Transparency

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Connecticut received a grade of A and a numerical score of 96, indicating that Connecticut was "Leading" in terms of transparency regarding state spending.

As published 2015

State finances in the U.S.
State tax policy in the U.S.
Pension Policy
State finances on the ballot Taxes on the ballot Glossary of state budget terms Public pensions

The information on this tab contains: Spending (fiscal years 2013 and 2014) Revenues (fiscal year 2013) State debt (fiscal year 2012) Federal aid to the state budget (fiscal year 2012) Budget process

Between fiscal years 2013 and 2014, total government spending in Connecticut decreased by approximately $1.7 billion, from $28.1 billion in fiscal year 2013 to an estimated $26.4 billion in 2014. This represents a 6 percent decrease. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Connecticut a credit rating of AA.

HIGHLIGHTS

In fiscal year 2014, total estimated spending in Connecticut amounted to $26.4 billion.

Connecticut ranked third in the nation for state debt per capita, which stood at $31,298.

Spending

Definitions

The following terms are used to describe a state's finances:

• Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
• Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
• State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
• The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
• State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
• Federal funds are "funds received directly from the federal government."
• Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.

Total estimated spending in Connecticut in 2014 was $26.4 billion. Estimated per capita spending in Connecticut totaled $7,351 in 2014.

Total estimated state spending, FY 2014 ($ in millions)
State	State funds	Federal funds	Total spending	Population	Per capita spending
Connecticut	$20,938	$5,501	$26,439	3,596,677	$7,350.95
Maine	$5,330	$2,696	$8,026	1,330,089	$6,034.18
Massachusetts	$41,752	$15,135	$56,887	6,745,408	$8,433.44
New Hampshire	$3,375	$1,703	$5,078	1,326,813	$3,827.22
Rhode Island	$5,259	$2,543	$7,802	1,055,173	$7,394.05
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures

Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Connecticut can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

In 2013 Connecticut dedicated the largest single portion of its budget to Medicaid at 21.8 percent. The bulk of its budget was dedicated to expenditures classified as "Other."

State spending by function as a percent of total expenditures, FY 2013
State	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Trans- portation	Other
Connecticut	14.1%	10.6%	1.4%	21.8%	2.3%	9.7%	40.2%
Maine	16.9%	3.6%	2.3%	32.7%	1.8%	8.2%	34.6%
Massachusetts	11.2%	10.1%	2.7%	18.7%	2.3%	6.6%	48.5%
New Hampshire	23.4%	2.2%	1.7%	25.6%	2%	10%	35%
Rhode Island	14.9%	13%	1.4%	24.8%	2.6%	6.3%	37%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

Between 2009 and 2013, the portion of Connecticut's budget dedicated to transportation increased from 6 percent to 9.7 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).

Spending by function from 2009 to 2013 (as percentages)
Year	K-12 education	Higher education	Public assistance	Medicaid	Corrections	Transportation	Other
2013	14.1%	10.6%	1.4%	21.8%	2.3%	9.7%	40.2%
2012	13.9%	10.3%	1.4%	21.4%	2.5%	10.0%	40.6%
2011	14.2%	10.2%	1.6%	21.6%	2.6%	11.7%	38.2%
2010	20.1%	13.9%	2.5%	25.4%	3.4%	9.5%	25.2%
2009	14.6%	10.8%	1.9%	20.9%	2.8%	6.0%	43.0%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.

Total tax collections in Connecticut in 2013 amounted to $16.1 billion. Per capita tax collections in 2013 totaled $4,483, highest among its neighboring states.

State tax collections by source ($ in thousands)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes	Total	2013 population	Per capita collections
Connecticut	N/A	$6,746,968	$453,112	$7,811,949	$572,628	$551,859	$16,136,516	3,599,341	$4,483.19
Maine	$38,636	$1,779,873	$260,918	$1,531,504	$171,987	$101,532	$3,884,450	1,328,702	$2,923.49
Massachusetts	$4,795	$7,455,326	$945,922	$12,876,192	$1,888,449	$730,363	$23,901,047	6,708,874	$3,562.60
New Hampshire	$400,369	$945,290	$272,852	$99,027	$553,197	$99,368	$2,370,103	1,322,616	$1,791.98
Rhode Island	$2,331	$1,516,423	$138,518	$1,088,992	$144,310	$49,859	$2,940,433	1,053,354	$2,791.50
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Connecticut tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. Individual income taxes accounted for 48.4 percent of total state tax collections in Connecticut in 2013.

State tax collections by source (as percentages)
State	Property taxes	Sales and gross receipts	Licenses	Individual income taxes	Corporation net income taxes	Other taxes
Connecticut	N/A	41.81%	2.81%	48.41%	3.55%	3.42%
Maine	0.99%	45.82%	6.72%	39.43%	4.43%	2.61%
Massachusetts	0.02%	31.19%	3.96%	53.87%	7.90%	3.06%
New Hampshire	16.89%	39.88%	11.51%	4.18%	23.34%	4.19%
Rhode Island	0.08%	51.57%	4.71%	37.04%	4.91%	1.70%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Connecticut had a state debt of approximately $112.4 billion. Its state debt per capita was $31,298. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.

Total 2012 state debt
State	Total state debt	State debt per capita	Per capita debt ranking
Connecticut	$112,372,072,000	$31,298	3
Maine	$16,717,250,000	$12,577	35
Massachusetts	$129,550,263,000	$19,493	12
New Hampshire	$18,425,567,000	$13,951	27
Rhode Island	$18,863,153,000	$17,960	16
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Connecticut public pensions and Connecticut public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of Connecticut's state-administered pension plans decreased from 56.6 percent to 49.1 percent. The state paid 100 percent of its annual required contribution, and as of fiscal year 2012, the pension system's unfunded accrued liability totaled $24.4 billion. This amounted to $6,922 in unfunded liabilities per capita.

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.

The table below lists the Standard and Poor's credit ratings for Connecticut and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.

State credit ratings, 2004 to 2014
State	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Connecticut	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Maine	AA	AA	AA	AA	AA	AA	AA	AA	AA-	AA-	AA
Massachusetts	AA+	AA+	AA+	AA	AA	AA	AA	AA	AA	AA	AA-
New Hampshire	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA
Rhode Island	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA	AA-
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.

The table below notes what share of Connecticut’s general revenues came from the federal government in 2012. That year, Connecticut received approximately $5.8 in federal aid, 23.6 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.

Federal aid to state budgets, 2012
State	Total federal aid ($ in thousands)	Federal aid as a % of general revenue	Ranking
Connecticut	$5,781,844	23.59%	47
Maine	$2,883,526	36.15%	12
Massachusetts	$12,920,153	28.80%	36
New Hampshire	$1,693,289	29.02%	34
Rhode Island	$2,310,656	33.76%	23
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, Connecticut received $2,347,030,000.00 in federal funding between February 2009 and June 2013.

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:

1. Budget instructions are sent to state agencies in July.
2. State agencies submit their budget requests to the governor in September.
3. The governor submits his or her proposed budget to the state legislature in February.
4. The legislature adopts a budget in May or June. A simple majority is required to pass a budget. The fiscal year begins on July 1.

Connecticut is one of 44 states in which the governor has line item veto authority.

The governor is legally required to submit a balanced budget. Likewise, the legislature must adopt a balanced budget.

Agencies, offices, and committees

There is only one standing committee in the Connecticut General Assembly that deals with budget and finance matters:

1. Finance, Revenue and Bonding Committee, Connecticut General Assembly

The Connecticut Comptroller acts as the state's accountant, managing accounts payable, preparing financial reports, and monitoring the finances of state agencies. The comptroller is elected ever four years in midterm election years and is a partisan office.

The Connecticut Treasurer acts as the state's chief financial officer, overseeing state funds and investments and maintaining unclaimed property. The treasurer is elected in partisan elections and does not have a term limit.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured the transparency and accountability of state websites with regard to state government spending. According to the report, Connecticut received a grade of B and a numerical score of 83, indicating that Connecticut was advancing. in terms of transparency regarding state spending.

As published 2014

The information on this tab contains: Spending (fiscal year 2013) Spending by function (fiscal year 2012) Spending trends (fiscal years 2008 to 2012) Revenues (fiscal year 2013) Historical spending (fiscal years 2009 to 2012) Budget transparency

Between fiscal year 2009 and fiscal year 2013, Connecticut's total expenditures increased by approximately $8.8 billion, from $19.3 billion in 2009 to $28.1 billion in 2013. This represented a 45.6 percent increase, outpacing the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).

Spending

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:

• General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
• Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
• Federal funds: "Funds received directly from the federal government."
• Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013

Breakdown of expenditures in FY 2013
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)
State	General fund	Federal funds	Other funds	Bonds	Total	Per capita expenditures
Connecticut	$19,030	$2,555	$3,618	$2,935	$28,138	$7,824.63
Maine	$3,042	$2,564	$2,176	$16	$7,798	$5,870.65
Massachusetts	$25,509	$15,548	$17,135	$2,106	$60,298	$9,009.35
New Hampshire	$1,262	$1,601	$2,080	$81	$5,024	$3,796.11
Rhode Island	$3,268	$2,659	$2,122	$84	$8,133	$7,734.58
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Spending by function

2012

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in Connecticut can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)
State	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
Connecticut	13.9%	10.3%	1.4%	21.4%	2.5%	10.0%	40.6%
Maine	13.1%	3.4%	2.6%	28.8%	1.7%	8.6%	41.8%
Massachusetts	10.7%	9.3%	2.5%	20.7%	2.1%	6.2%	48.6%
New Hampshire	23.5%	2.7%	1.9%	23.9%	2.1%	10.1%	35.9%
Rhode Island	14.2%	13.2%	1.4%	25.0%	2.4%	6.5%	37.4%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Spending trends

From 2008 to 2012, Medicaid spending rose by four percentage points, or 23 percent, as a share of the budget. Meanwhile, elementary and secondary education expenditures fell by over one percentage point during the same period, or 8.6 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012.

Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percentages)
Year	Elementary and secondary ed.	Higher ed.	Public assistance	Medicaid	Corrections	Transportation	Other
2012	13.9%	10.3%	1.4%	21.4%	2.5%	10.0%	40.6%
2011	14.2%	10.2%	1.6%	21.6%	2.6%	11.7%	38.2%
2010	20.1%	13.9%	2.5%	25.4%	3.4%	9.5%	25.2%
2009	14.6%	10.8%	1.9%	20.9%	2.8%	6.0%	43.0%
2008	15.2%	10.7%	1.9%	17.4%	2.9%	6.4%	45.5%
Change in %	-1.3%	-0.4%	-0.5%	4%	-0.4%	3.6%	-4.9%
Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)
State	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
Connecticut	$3,857	$8,719	$742	$612	$5,437	$19,366	$5,385.31
Maine	$1,034	$1,495	$171	$0	$351	$3,051	$2,296.92
Massachusetts	$5,164	$12,831	$1,822	$0	$7,352	$27,169	$4,059.42
New Hampshire	$0	$0	$552	$3	$1,728	$2,283	$1,725.03
Rhode Island	$873	$1,075	$137	$1	$1,238	$3,324	$3,161.17
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013. Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Connecticut ($ in millions)
Year	Sales tax	Personal income tax	Corporate income tax	Gaming tax	Other taxes and fees	Total	Per capita revenue
2013	$3,857	$8,719	$742	$612	$5,437	$19,366	$5,385.31
2012	$3,830	$8,311	$717	$658	$5,046	$18,562	$5,167.93
2011	$3,353	$7,246	$794	$653	$5,661	$17,707	$4,933.76
2010	$3,204	$6,586	$667	$673	$6,558	$17,688	$4,941.87
2009	$3,319	$6,386	$616	$665	$4,715	$15,701	$4,462.68
Change in %	16.21%	36.53%	20.45%	-7.97%	15.31%	23.34%	20.67%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates. Source: National Association of State Budget Officers

Historical spending

The information on state budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).

Historical state spending in Connecticut ($ in millions)
Fiscal year	General Fund		Other funds		Federal funds		Bonds		Budget totals
	Total	% of Budget	Total	% of Budget	Total	% of Budget	Total	% of Budget
2011-2012	$18,782	68%	$3,489	13%	$2,631	10%	$2,656	10%	$27,558
2010-2011	$17,845	68%	$3,224	12%	$2,701	10%	$2,404	9%	$26,174
2009-2010	$17,241	71%	$2,817	12%	$2,482	10%	$1,819	7%	$24,359
Averages:	$17,956	69%	$3,177	12%	$2,605	10%	$2,293	9%	$26,030

Budget transparency

Transparency evaluation
	transparency.CT.gov
Searchability	P
Grants	Y
Contracts	Y
Line item expenditures	Y
Dept./agency budgets	N
Public employee salaries	Y
Last evaluated in 2012.

See also: Evaluation of Connecticut state website and Constitutional provisions regarding reading of bills

As of March 2015, Connecticut did not have a constitutional provision providing time for review of bills prior to passage by the legislature.

The state's official online spending database can be accessed here. The site was created as a result of Public Act No. 10-155 and is operated by the Office of Fiscal Analysis using data provided by the Office of the State Comptroller.

Government tools

The table to the right is helpful in evaluating the level of transparency provided by Connecticut's spending database.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Connecticut, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Connecticut tied for 33rd in the nation with 11 other states, earning four out of eight possible points.

Connecticut - IGPA score for budget process, contents and disclosure
Budget transparency indicator	Yes or no?
Performance measures
"Generally Accepted Accounting Principles" budget	N
Multi-year forecasting
Annual cycle	N
Binding revenue forecast	N
Legislative revenue forecast	N
Nonpartisan staff	Y
Constitution or statutory tax/spend limitations	Y
TOTAL	4

In addition to the individual state profile, IGPA offered a 50-state comparison and profiles for other states.

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Connecticut received a grade of B and a numerical score of 83, indicating that Connecticut was an "advancing" state in terms of transparency regarding state spending.

Prior fiscal year budgets

Fiscal year 2016

See budget bill: HB 7061

Governor Dannel P. Malloy announced his 2016-2017 biennium budget proposal on February 18, 2015. State spending was proposed to increase by 3.3 percent in fiscal year 2016 and an additional 3.1 percent in fiscal year 2017. The governor's plan proposed major investments in transportation, including a 30-year $100 billion transit plan that would improve the state's highways. Also included was a sales tax reduction that would have saved taxpayers $225 million over two years.

On June 30, 2015, Governor Malloy signed the state's biennium budget into law. Included in the budget were spending increases of 3.9 percent in fiscal year 2016 and another 3 percent increase in fiscal year 2017. The budget rolled back previous tax increases that impacted the state's business community. The budget did include the state's largest-ever investment in transportation, which featured an increase of about $2.8 billion over five years on infrastructure spending.

Fiscal year 2015

See budget bill: HB 5596

Governor Dannel P. Malloy announced his midterm budget adjustment proposal on February 5, 2014. Under the governor's proposal, total state spending for fiscal year 2015 would have equaled approximately $19.03 billion, including $17.50 billion in general funds. Malloy's proposal included a $40 million increase in early childhood and K-12 education expenditures, as well as $51.3 million in new tax cuts.

On May 29, 2014, Malloy signed into law the midterm budget adjustment. Under the adjusted budget, total state appropriations for 2015 equaled $19.14 billion, which was $28.6 million less than under the original enacted biennial budget.

Fiscal year 2014

See budget bill: HB 6704

Connecticut state budget -- 2014
Connecticut State Legislature
Text:	HB 6704
Legislative history
Introduced:	June 1, 2013
House:	June 2, 2013
Vote (lower house):	95-48-7
Senate:	June 3, 2013
Vote (upper house):	19-17
Governor:	Dannel Malloy
Signed:	June 18, 2013

On June 19, 2013, Governor Dannel Malloy signed the 2014-2015 biennial budget into law. Malloy and legislative Democrats claimed that the budget made "historic investments in growing jobs and improving our public schools" and included "no new taxes." Meanwhile, Republicans argued that the budget did contain new taxes, pointing to a previously approved gas tax increase, the extension of a 20 percent corporate tax surcharge, and miscellaneous fee increases.

A total of approximately $6.4 billion in Medicaid spending (primarily from federal funds) was shifted off-budget. This move was also criticized by Republicans.

Fiscal year 2013

See also: Connecticut state budget (2012-2013)

Fiscal year 2011

See also: Connecticut state budget (2010-2011)

Fiscal year 2010

See also: Connecticut state budget (2009-2010)

See also

• Connecticut state budget and finances