Connecticut’s fixed costs to rise $2 billion, driven by Medicaid

Connecticut Inside Investigator – Thursday, November 27, 2025
By Marc E. Fitch

Despite projections showing the State of Connecticut will take in billions in surplus revenue between now and 2030 that will be used to pay down the state’s pension debts, the latest fiscal accountability report from the Office of Fiscal Analysis shows Connecticut’s fixed costs will also continue to rise by billions.

Between this fiscal year and 2030, Connecticut’s fixed costs – which include pensions, retiree healthcare, Medicaid, and debt payments – will grow by $2.1 billion, with most of the increase coming from a $1.2 billion increase in the cost of Medicaid, driving fixed costs to consume nearly 54 percent of the budget.

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