Section I: Introduction — The State of Connecticut Office of Policy and Management and Department of Education
Summary
Connecticut's maintenance of effort (MOE) waiver request, submitted by the State of Connecticut Office of Policy and Management and Department of Education to the U.S. Department of Education. The State requests a waiver of the FY 2020 MOE requirement for higher education under section 18008 of the CARES Act and the FY 2022 and FY 2023 MOE requirements for elementary and secondary and higher education under section 317(a) of the CRRSA Act and section 2004(a) of the ARP Act. It says its inability to meet the requirement is not due to a lack of consistent support but to one-time constraints and the unique parameters of the MOE formula. It states that state appropriations for state colleges and universities increased by over $45 million from FY 2018 to the current fiscal year. These are the State's own characterizations; no date is printed.
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“Section I: Introduction — The State of Connecticut Office of Policy and Management and Department of Education.”
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Section I: Introduction
The State of Connecticut Office of Policy and Management and Department of Education are requesting
a waiver for the following:
• FY 2020 Maintenance of Effort (MOE) requirement for higher education under section 18008 of
the CARES Act;
• FY 2022 and FY 2023 MOE requirements for elementary and secondary education; and
• FY 2022 and FY 2023 MOE Requirements for higher education under section 317(a) of the
CRRSA ACT and section 2004(a) of the ARP Act.
As demonstrated in the following narrative, despite substantial growth in Connecticut’s long-term
liabilities and entitlement programs the state has continued to make investments in K-12 and Higher
Education. The state’s inability to meet the MOE requirement is not the result of a lack of consistent,
increasing support for education, but rather due to one-time constraints, or to the unique parameters of
the required MOE formula under the CRRSA Act and the ARP Act. The state therefore respectfully
submits this request for a waiver by demonstrating below the state’s consistent record of support for K-
12 and Higher Education in line with the spirit and intent of the various USDOE MOE requirements.
Section II: MOE Waiver Request Background- CARES Act - Support for Higher Education:
Under the CARES Act (Section 18008) a state that receives ESSER or GEER funds must maintain support
for higher education in each of the FYs 2020 and 2021 at least at the level of such support that is the
average of the support for FYs 2017, 2018, and 2019. Connecticut has demonstrated an increasing
commitment to public institutions of higher education in recent years, with state appropriations for
state colleges and universities increasing by over $45 million from FY 2018 to the current fiscal year
despite declining enrollment. The enacted budget for FY 2018 included steep spending reductions
across all spending categories in the state budget, including state support for higher education. These
reductions were necessary to mitigate a budget deficit at that time. Since this one-time austerity
measure enacted five years ago is included in the base years for the MOE Calculation, the MOE
calculation does not capture the trend of significantly growing per-pupil state support for higher
education in the last four years. When one judges Connecticut’s recent commitment to higher education
without the specific framing of the CARES Act maintenance of effort formula, it becomes clear that the
state has highly prioritized institutions of higher education and the students attending them. This
support is explained in more detail in Sections IV and V of this waiver request.
Section III: MOE Waiver Request Background- CRRSA Act and ARP Act – Support for K-12 and Higher
Education:
Under the CRRSA Act (Section 317) a state that receives ESSER II, GEER II, and EANS must maintain
support for K-12 and higher education in FY 2022 at least at the proportional level of the State’s support
for K-12 and higher education relative to the State’s overall spending, averaged over FYs 2017, 2018,
and 2019. Under the ARP Act (Section 2004(a)) a state that receives ARP ESSER funds must maintain
support for K-12 and higher education in FY 2022 and FY 2023 at least at the proportional level of the
State’s support for K-12 and higher education relative to the State’s overall spending, averaged over FYs
2017, 2018, and 2019. Despite support for K-12 and higher education growing consistently during the
period included in the MOE calculations, required state investments to cover entitlements, long term
liabilities, and constraint from the state’s constitutional spending cap, resulted in growth in these areas
that is not proportional relative to other state spending. Detailed information for these expenditure
categories is provided in section IV and V of this waiver request, while Sections VI and VII demonstrate
the structural constraints to growing investments in K-12 and Higher Education that the state faces.
Section IV: Support for Education.
Although the spending on K-12 education has declined as a proportion of General Fund spending from
the baseline fiscal years, Connecticut has consistently increased state General Fund support for
education during the relevant time period. Tables 1 and 2 below show the steadily increasing
investment on both a per-pupil and overall basis. Since FY 2018, both per-pupil and overall state support
for K-12 education and higher education has increased every year, even as K-12 enrollment and higher
education enrollment has steadily decreased. By FY 2021, state support for K-12 Education increased by
roughly $64.4 million over FY 2017 (approximately 3.2%), even though K-12 enrollment had decreased
by over 25,000 students (approximately 4.8%) in the same period. Although there was a decrease in
state support for higher education between FY 2017 and FY 2018, state support for higher education
increased every year from FY 2018 through FY 2021. Despite enrollment at the state’s constituent units
of higher education 1 decreasing by over 7,000 (approximately 4.8%) between FY 2018 and FY 2020, state
support for these institutions increased by close to $16.8 million (approximately 3.3%). Per pupil support
to the state’s constituent units of higher education increased by approximately $290.62 (approximately
8.8% percent) from FY 2018 through FY 2020.
Downward trends in K-12 enrollment have continued through the current biennium as the state has
continued its commitment to supporting education with budgeted increases in spending in FY 2022 and
FY 2023 of approximately $47.2 million in FY 2022 and $45.6 million in FY 2023. Higher education
spending is increased by approximately $5.9 million in FY 22 over FY 21 and is then maintained at FY 22
levels in FY 23. In addition to these General Fund appropriations, significant unspent state funding from
FY 2021 (i.e., carryforward funding), was allocated pursuant to PA 21-2 JSS 2, to provide additional
support to higher education in FY 2022 and FY 2023, largely in part to offset the impact of the pandemic
on operating revenue. This carryforward funding totals approximately $61.7 million in FY 2022 and $72.3
million in FY 2023. This funding is in addition to the General Fund appropriations reflected in the FY 2022
and FY 2023 support for Higher-Education figures reflected in Table 2.
1
In this document, “Constituent Units” refer to the University of Connecticut and all institutions in the Connecticut
State Colleges and Universities System.
2
The funding to be carried forward for Higher Education can be found in Section 308 of PA 21-2 JSS.
Table 1. 3
State Support for K-12 Education, Total K-12 Enrollment, and Estimated Per-Pupil State Spending,
Per Pupil State
State support for K-
K-12 Enrollment Support for K-12
12 Education
Education
FY 2017 2,027,587,120.00 538,899.00 3,762.46
FY 2018 1,986,183,701.00 535,025.00 3,712.32
FY 2019 2,016,728,682.00 530,612.00 3,800.76
FY 2020 2,054,281,297.00 527,829.00 3,891.94
FY 2021 2,092,033,975.00 513,079.00 4,077.41
FY 2022 2,139,188,097.00
FY 2023 2,184,789,061.00
Table 2
State Support for Higher Education, Enrollment and Per-Pupil Spending 4
Per Pupil State
Constituent Unit
State Support for State support for Support at
Enrollment
Higher Education Constituent Units Constiutent Units of
Levels
Higher Education
FY 2017 574,089,408.00 539,106,356.00 147,955 3643.72
FY 2018 514,378,926.00 479,992,546.00 144,994 3310.43
FY 2019 523,339,481.00 489,983,469.00 142,725 3433.06
FY 2020 531,129,449.00 496,887,634.33 137,984 3601.05
FY 2021 553,584,632.00 519,642,090.00
FY 2022 559,437,641.00 527,255,924.00
FY 2023 559,437,641.00 526,049,004.00
3
Statistics pertaining to K-12 public school enrollment in the State of Connecticut can be found at the following
link EdSight - Connecticut State Department of Education. The state support for K-12 Education are drawn from the
same sources as cited in the state’s previous MOE Submissions. For FY 22 and FY 23, the state support for K-12
education can be found in the Department of Education’s General Fund appropriation for Education Equalization
Grants in SA 21-15, the State of Connecticut’s FY 22-23 Enacted Budget.
4
Higher education enrollment figures cited herein are available through IPEDS The Integrated Postsecondary
Education Data System. State Support for higher education is drawn from the same sources as in the ESSER MOE
submissions to date. Per pupil-support figures are calculated after removing the Roberta Willis Scholarship Figures
from the support to higher education Figures. This total figure is reflected in the State Support for Constituent
Units column of Table 2. For FY 22-23 State Support for Higher Education Figures were drawn from SA 21-15,
referenced in Footnote 2.
Section V: Commitment of Federal Pandemic Related Funds to Provide Net New Revenue for K-12 and
Higher Education:
In addition to state General Fund support, all ESSER and HEER Funds received to date have been used to
provide net new resources to support K-12 and higher education. In addition, significant GEER funding
has been used to support new K-12 and higher education initiatives as summarized below:
(1) Approximately $9.3 million to the State Department of Education (SDE) to provide devices and
internet connectivity to teachers and students where either LEAs or families are unable to provide a
device; ensuring equitable access to remote learning.
(2) $6.9 million to the Office of Higher Education (OHE) to provide need-based scholarships to students
to attend Connecticut institutions of higher education. The scholarships will be awarded based on the
same eligibility criteria and formula as the needs-based grants awarded through the state’s Roberta
Willis Scholarship program.
(3) $2 million to public institutions of higher education, including the University of Connecticut and all
state universities and community colleges within the Connecticut State Colleges and Universities (CSCU)
system, for improved classroom technology to better accommodate remote learning.
(4) Approximately $5.7 million to SDE for the Learner Engagement and Attendance Program (LEAP) to
support student re-engagement and attendance in 15 of Connecticut’s neediest school districts. This
program is supplemented by $5 million in GEER II Funds.
In addition to the aforementioned LEAP Program (#4 above), GEER II funding has been allocated to
support the following initiatives:
(1) $1.66 million in GEER II has been allocated to SDE to support a Remote Learning Study, which will
help to prepare Connecticut schools to implement remote learning more effectively in the future.
(2) Approximately $2.7 million to the Office of Higher Education to support a Mental Health Initiative at
institutions of higher education in the state aimed at providing grants to help address a mental health
crisis among college students that was worsened by COVID-19.
(3) Approximately $3.1 million to SDE to support a pilot mental health initiative at 6 districts statewide,
in order to help districts create a scalable and sustainable coordinated system of care that includes
wrap-around services for both students and families that can be provided inside and outside of school.
Among other initiatives, state-level, set-aside ESSER I and ESSER II funds have been used to support the
following in the K-12 domain:
• provide broadband and hotspots to students participating in remote learning opportunities,
• develop a statewide model curriculum,
• provide social emotional learning tools to districts statewide, and
• support special education recovery grants and reading/dyslexia tutoring for 3,000 students
statewide. All funds have been used to provide additional, new resources to Connecticut
Students in response to the pandemic and its effects on education.
Public institutions of higher education in Connecticut allocated their direct Higher Education Emergency
Relief Fund (HEERF) awards for various purposes to mitigate the impacts of the pandemic. Initiatives
include but were not limited to, providing financial aid to students, refunding student fees for campus
closures due to COVID-19 outbreaks, and erasing student debt incurred during the pandemic.
In addition, the State of Connecticut has made significant investment utilizing Coronavirus Relief Funds
to finance various K-12 and Higher Education initiatives, including, but not limited to:
K-12 Education:
(1) Approximately $115 Million Distributed to LEAs statewide to support safe, in person learning during
the 2020-21 School Year.
(2) $22 Million to provide devices to students statewide to enable participation in remote learning
opportunities.
Higher Education:
Over $104 million to Institutions of Higher Education, for various expenses, including:
(1)-Accommodations for remote instruction during the Fall 2020, Spring 2021, and Fall 2021 semesters.
(2) COVID-19 testing for on-campus students.
(3) PPE, sanitization, and other public health support.
(4) Operating support for public safety and public health personnel.
Section VI: Growth in State Expenses related to Long Term Liabilities and Entitlements Outpace
Growth in Other Areas
As summarized above the state has made significant investments over the baseline period in the K-12
and higher education space. In addition, the state has leveraged COVID related federal funds to wrap
around existing state resources to provide education institutions additional resources needed to
respond to the immediate impact of the pandemic. However, the MOE formula is predicated on
proportionality, aimed at ensuring states maintain core commitments to education despite historic
levels of federal funding. As demonstrated in Table 3 and discussed herein, the state of Connecticut has
significant long-term liabilities including the State Employees Retirement System and the Teachers’
Retirement System, other post-employment benefits (OPEB), outstanding debt service costs, and a
GAAP deficit. As of June 30, 2021, total long-term liabilities of the State of Connecticut are
approximately $95 Billion as detailed in Table 3.
Table 3: LONG-TERM OBLIGATIONS 5
(All Figures In Billions)
LONG-TERM OBLIGATIONS
(in billions)
Bonded Indebtedness – As of 6/30/21 $27.2
State Employee Pensions – Unfunded as of 6/30/20 22.7
Teachers’ Pensions – Unfunded as of 6/30/20 18.1
State Employee Post-Retirement Health and Life – Unfunded as of 6/30/20 23.5
Teachers’ Post-Retirement Health and Life – Unfunded as of 6/30/20 2.8
Cumulative GAAP Deficit – As of 6/30/20 1.1
Total $95.4
Annual state spending required to pay down long term obligations and cover the annual cost of
entitlement programs has been steadily increasing in recent years and accounts for the majority of
growth in the state’s General Fund. 6 Table 4 reflects total General Fund appropriations and total long
term liability/entitlement appropriations over the previous biennium (FY 20 and FY 21), and the current
biennium (FY 22 and FY 23), as well as the growth rates for these categories for the same time period.
Table 5 compares the percentage and total growth over the period FY 20 to FY 23. As demonstrated
therein, the percentage rate of growth in entitlement appropriations was greater than the total rate of
growth for the General Fund in both FY 21 and FY 23. In summary, spending on long term liabilities and
entitlements accounted for 64.87% of the growth in General Fund appropriations; growth across this
category of state spending is 22.91% higher than total General Fund appropriations over the same
period.
5
Source: page 29 of the Fiscal Accountability Report Published by the Office of Policy and Management in
November of 2021.
6
A full list of the accounts can be found in the Fiscal Accountability Report Published in November of 2021 by the
Office of Policy and Management cited in footnote 5.
Table 4: General Fund and Entitlement Appropriations FY 20-23. 7
Total General Fund Appropriations v. Entitlement/Long Term Obligation
Appropriations FY 20-23
General Fund
Rate of Growth Entitlement Rate
Total General Fund over Previous Entitlement of Growth over
Appropriations Year Appropriations Previous Year
FY 2020 19,319,061,825 10,195,702,279
FY 2021 19,981,977,623 3.43% 10,643,000,451 4.39%
FY 2022 20,746,395,112 3.83% 10,887,880,819 2.30%
FY 2023 21,534,334,736 3.80% 11,632,707,161 6.84%
Table 5: General Fund and Entitlement Appropriations Growth Comparison FY 20-23
Total General Fund and Entitlement/Long Term Obligations Growth Comparison FY
20-23
Total General Fund Entitlement Entitlement Growth as Entitlement
Appropriations Appropriations a Percentage of Growth
General Fund Growth Compared to
General Fund
Growth
Gross Growth FY 20-
23
2,215,272,911 1,437,004,882 64.87%
Percentage
Growth FY 20-23 11.47% 14.09% 22.91%
Section VII: Constitutional Spending Cap:
Lastly, the State of Connecticut operates within a statutory and constitutional Spending Cap. The cap
limits the rate at which the General Assembly can authorize increased expenditures based on a variety
of factors including the previous fiscal year appropriations and the percentage growth rate in personal
income. Given the documented growth in annual required spending on long-term obligations and
entitlement programs discussed above, Connecticut is limited in its ability to make unrestricted
additional investments across all areas of the General Fund budget, despite this the state has
demonstrated sustained commitment to investing in the K-12 system and public institutions of higher
education in line with the expressed intent and spirit of the MOE requirement.
7
General Fund appropriations by account for FY 20 and FY 21 can be found in PA 19-117, the State of Connecticut’s
FY 20-21 Biennial Budget. General Fund appropriations by account for FY 22 and FY 23 can be found in SA 21-15,
cited in footnote 2.
Section VIII: Conclusion
In closing, the State of Connecticut respectfully request a waiver of the MOE requirements as outlined
above. Please note, pursuant to updated MOE waiver guidance as of 2/18/22, the state evaluated
compliance with the MOE requirements inclusive of ARPA SLFRF and CRF funding. Inclusive of this
funding, the state nevertheless failed to meet the MOE requirements. Therefore, a decision was made
not to update the state’s MOE baseline submission as it does not alter the state’s determination that a
request of a waiver was still needed.
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