Inflation's silver lining: CT's budget cap can increase

The state's spending cap tries to keep budget growth in line with increases in personal income or inflation, whichever is larger. Throughout most cap history, personal income has allowed the most growth. But after hitting a 40-year high in 2022, inflation is expected to make it easier again this spring for state officials to craft Connecticut's next budget.

Years when the growth factor was controlled by personal income increases are shown in blue; years controlled by inflation are shown in orange. * Additional spending allowed shown in millions of dollars
Chart: CT Mirror Source: CT Office of Policy and Management Get the data