A Holistic Measure of Socioeconomic Status for Municipal Aid Allocation in Connecticut

Abstract

Economic disparities between municipalities in the state of Connecticut remain a pressing concern, often complicating efforts to allocate government aid effectively. Although Connecticut boasts one of the highest per capita incomes in the United States, the distribution of wealth and access to resources across its 169 towns is far from equitable. This paper introduces a comprehensive, data-informed approach to measuring socioeconomic status (SES) that seeks to address this challenge. By combining five carefully selected indicators—median home value, unemployment rate, median household income, participation in the Supplemental Nutrition Assistance Program (SNAP), and poverty rate—a composite SES index was developed for each municipality. These indicators were normalized and weighted to ensure consistency and comparability across towns of varying population sizes and economic characteristics. The resulting SES scores allowed for the classification of municipalities into high, medium, and low SES groups, offering a clearer picture of where disparities lie. The methodology is designed to serve as a practical framework for policymakers, particularly in decisions regarding the allocation of state-level financial aid and programmatic support. The analysis highlights stark contrasts between affluent towns such as Darien and New Canaan and economically distressed areas like Hartford and Waterbury. This disparity reinforces the need for targeted intervention strategies. By grounding aid allocation decisions in a transparent, replicable, and holistic measure of socioeconomic conditions, this study provides a foundation for more equitable governance and fiscal planning. The findings have potential implications beyond Connecticut, offering a replicable model for other states seeking to improve equity in municipal resource distribution through empirical assessment of local socioeconomic conditions.