Education Cost Sharing (ECS) Town Wealth

Overview

Pursuant to Section 10-262f (26) of the Connecticut General Statutes, ECS Town Wealth is determined based on a town's property tax base and the income of its residents. The property tax base is measured per student and per person. It is used because it is the form of wealth taxed by Connecticut's towns. Income is measured on a per capita and a median household basis. Per Capita Income (PCI) and Median Household Income (MHI) are used because the income from which taxes are paid has an important affect on town taxing capacity. These factors are then averaged and combined as shown below. ENGL is the Equalized Net Grand List which represents the value of taxable real and personal property (net grand list) at 100 percent fair market value. ECS uses a three-year average of ENGL. The use of an average helps to stabilize town ealth, especially for those towns experiencing significant increases or decreases in a given year, particularly during a year of revaluation.

Refer to Related Resources for various data elements used in the AENGLC calculation and calculation formula.