The Connecticut General Assembly recently passed legislation permitting towns and municipalities to reduce their appropriations to school districts in an amount up to the funding received by the school district directly as a result of the State Fiscal Stabilization Fund portion of the American Recovery and Reinvestment Act (ARRA; commonly referred to as the “Stimulus Package”). ARRA directs that State Fiscal Stabilization funding should go directly to school districts. This law permits, but does not require, towns to reduce their appropriations accordingly if the appropriations for the school district failed to account for the direct provision of such State Fiscal Stabilization funds. The text of the new law can be found by clicking here (at Section 19).