The September issue of Economic Pulse from State Comptroller Sean Scanlon. 

September 2025

It’s already September, and that means kids are going back to school.

This is a big year for me, as my oldest is off to kindergarten–so far, so good adjusting! I’m wishing all the students, teachers, and parents a successful schoolyear.

With the return to school, we thought this month would be the perfect time to take a deep dive into K-12 funding in Connecticut, breaking down what share of funds we get from the federal government and how the Education Cost Sharing (ECS) grants aim to equitably fund our state’s public schools.

We hope you will give the full economic update a read, and we encourage you to share! If you have any feedback for us on what you’d like to see in future editions, we welcome it.

Side note: I’d love to see you at my upcoming summit, The Future of Retirement: Policy, Planning, Protection, on September 17, hosted in collaboration with CBIA and AARP. Learn more and register here.

Stay sharp, stay informed, and keep your finger on the pulse,

Comptroller Sean Scanlon

Quick Beat:

General Fund Surplus:

$350.5 million

Special Transportation Fund Surplus:

$19.6 million

Uncertainty around the U.S. economic outlook has intensified as President Trump has made drastic changes to trade and immigration policy that continue to evolve. Most analysts expect growth to slow in the second half of 2025, with elevated tariffs, tighter immigration, and policy uncertainty weighing on investment and consumer demand. The same is likely for Connecticut.

The labor market is showing signs of strain. U.S. job growth slowed to 73,000 in July, with huge downward revisions to prior months, and unemployment edged up to 4.2%. Connecticut saw large labor force declines in June and July, though employment remains near record highs.

Why does Federal Reserve independence matter? As President Trump rachets up pressure for the Fed to significantly cut interest rates, the politicization of the Fed could result in more expensive borrowing costs for Connecticut residents and businesses.
KEY DATES THIS MONTH

9/5 – August U.S. jobs report

9/11 – August CPI inflation report

9/18 – August CT jobs report

9/25 – U.S. 2025Q2 GDP 3rd estimate

 

9/26 – CT 2025Q2 GDP & personal income

What do you know about ECS?
Connecticut boasts some of best K-12 public schools in the nation. But 56.7% of school district funding, on average as of 2023, comes from local governments that are forced to rely primarily on property taxes to fund their schools…
More on state efforts

Positive outlook for 2025
According to ConstructConnect, a national provider of construction industry data, Connecticut had construction starts worth $7.36 million in 2024. That’s a good indicator of both  investment and activity in the state’s construction industry.
But will it last?

Why is their independence important?
The Fed’s annual meeting seemed to be surrounded by more controversy and tension than in past years. We go through the myriad of ways this body’s decisions affect Connecticut residents.
Read more here!

Multi-family permits on the rise
Connecticut authorized permits for 969 new units of housing in July, the largest single-month amount since 2019, and multi-family permits are up 68.6% YTD through July.
See what’s new

Information provided is provided by the Comptroller listed below.
The Office of the State Comptroller | 165 Capitol Ave | Hartford, CT 06106 US