Educational Cost Sharing—An Overview
by Kathy Wilson

PT Council Member At-Large
Education Advocate

WHAT IS ECS?
ECS, Educational Cost Sharing, provides the bulk of state education aid to towns. It employs a formula based on a standard amount per pupil (the Foundation), adjusted for each town’s property wealth, resident income, and student characteristics. Over time the formula has been manipulated for both fiscal and political reasons, never operating as originally designed, rarely updated to reflect actual education costs, never fully funded.

WHAT WAS THE ECS CAP?
The ECS cap was in effect from the early ‘90’s through fiscal year '07. Though it varied in size and scope from one budget cycle to the next, the cap basically limited the amount by which a town’s ECS grant could rise year to year, regardless of changes in need as measured by the formula. Conversely, if a town’s formula aid decreased, a stoploss provision prevented its grant from dropping.

WHAT’S HAPPENED LATELY?
In late 2005 the CT Coalition for Justice in Education Funding filed suit against the state, alleging that the way it funds education violates the right under the CT constitution to a suitable and substantially equal public education. (See www.ccjef.org.) In early 2006 the governor convened a Commission on Education Finance, which a year later recommended major revisions to the ECS formula. A version of these revisions became law in mid-2007, most notably a large increase in the Foundation. This revised ECS formula would generate a $900 million increase in the overall grant for 2008 if it were fully funded, but the state chose instead to phase in only 17% of the increase in 2008 and just an additional 6% in 2009. In a variation on the stoploss idea, every town is guaranteed a minimum increase of 4.4% each year, and that 4.4% minimum increase is all that was funded for 2009.

WHAT DOES ECS COST?
ECS is the most expensive state program in Connecticut, totaling over $1.8 billion for 2008—fully funded it would cost $2.7 billion. But Connecticut contributes a lower percentage to K-12 public education than the vast majority of states, about 40% in recent years, and the state’s contribution to total education spending has never attained the 50/50 state/local cost share goal set years ago by the CT Board of Education when ECS was launched.

WHAT IS WEST HARTFORD’S SITUATION?
The ECS grant historically has covered less than 10% of West Hartford’s education costs. This year, it contributes $15.4 million (13%) of our $122 million gross budget and is up 35% from 2007’s $11.4 million allocation.

In years past, the ECS cap had a severe effect on West Hartford because it did not allow increases in aid to keep pace with the town’s changing demographics. From FY ’97 through ‘07 it reduced West Hartford’s ECS grants by a total of $45 million, making the town one of the 10 most hurt by the ECS cap. And now, because of the phase-in, West Hartford’s $15 million grant is $20 million below the $35 million we would receive if ECS were fully funded. Among the 22 towns underfunded by $10 million or more this year, our funding percentage (44%) is the second lowest, and our loss to underfunding since ’97 now totals nearly $65 million. Next year, unless the state raises and funds the phase-in percentage, that shortfall could rise another $19 million to over $83 million.