East Hartford, CT – The Town of East Hartford has proposed a $226.6 million budget for fiscal year 2026, reflecting a 2.3% increase over the previous year.
The plan includes a mill rate hike from 44 to 45.90, aimed at compensating for a $3.3 million drop in revenue.
Rising contractual obligations, pension liabilities, and education funding drive the increase, while officials move to trim spending in other areas.
Contractual agreements account for $70.7 million, a 2.5% rise.Health benefits and insurance will require $10.4 million, up 4%. Pension and retirement expenses climb to $28.7 million, an increase of 3.4%.
The town’s largest expenditure remains education, with a $104.6 million contribution to the Board of Education, up 2%.
Debt service for the town and school district will increase 9.1% to $10.6 million.
Meanwhile, capital improvements will see a sharp 29.5% cut, leaving just $2 million for infrastructure projects.
To mitigate costs, officials have proposed salary freezes for department heads, non-bargaining unit employees, and the mayor. The overtime budget will shrink, while $1.2 million in capital improvements for public works and the fire department has been scrapped.
Another $1.07 million in DPW infrastructure improvements will be postponed. Non-grant-funded initiatives totaling $864,000 are also on hold.
The town’s revenue decline stems from tax exemptions and legislative changes.
A five-year Enterprise Zone designation for a Lowe’s development reduces revenue by $1.28 million.
A new property tax exemption for veterans under Public Act 22-46 cuts another $277,000. Changes to Connecticut’s motor vehicle tax assessments further deplete revenue by $1.8 million.
Officials point to long-term economic development projects, including Concourse Park Apartments and Silver Lane Plaza redevelopment, as future tax revenue sources. But those gains remain years away.
In the short term, residents will face a higher tax burden as East Hartford navigates its financial hurdles.
