Fiscal disparities exist when some municipalities face higher costs for providing a given level of public services or fewer taxable resources to finance those services than others. A municipality's economic and social characteristics can affect both costs and resources.

The potential for fiscal disparities in Connecticut is particularly high given the vast socioeconomic differences observed across the state's 169 cities and towns. This paper measures the non-school fiscal health of Connecticut municipalities using a "municipal gap." Municipal gap is the difference between the uncontrollable costs associated with providing public services and the economic resources available to a municipality to pay for those services.

This research is the result of a collaboration between the Center and the Connecticut Legislative Program Review and Investigations Committee.