Connecticut's heavy reliance on the local property tax to fund pre-K through 12 public education causes spending inequities, according to the Connecticut Conference of Municipalities.
"Some progress has been made, but much more needs to be done," the advocacy group said in a
In September, state Superior Court Judge Thomas Moukawsher, in the 11-year-old case Connecticut Coalition for Justice in Education Funding v. Rell, ordered Connecticut to rework its aid-distribution formula to better serve students in lower-income communities. He essentially labeled as unconstitutional the state educational system's underpinning.
Attorney General George Jepsen is appealing the ruling to the Connecticut Supreme Court. Oral arguments could begin in the spring.
Connecticut in fiscal 2012 ranked 42nd nationwide for the state government's share in funding public education. For fiscal 2015, according to CCM, it was 43.9%. A gubernatorial task force in 1999 called for a 50-50 goal.
"While the goal of at least a 50-50 funding partnership remains elusive, any movement toward that mark is important because new state dollars can reduce overdependence on regressive property taxes and lessen the inequity inherent in that dependence," said the CCM report.
The court case adds more fiscal uncertainty to Connecticut. Last month the General Assembly's Office of Fiscal Analysis projected a roughly $78 million budget deficit for fiscal 2017.
Moody's said the ruling, if upheld, would be a credit positive for low-income cities with underperforming schools, notably Bridgeport, New Haven and Hartford.
Moody's Investors Service rates Connecticut's general obligation bonds Aa3 with a negative outlook. S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency assign AA-minus, all with stable outlooks.
