Childcare in New York encompasses state and city-funded programs for early childhood education, prekindergarten, and specialized services for children with disabilities. This page covers CBC’s work on childcare subsidies, universal versus targeted program funding, per-student spending trends, the use of federal pandemic aid, and the fiscal sustainability of early childhood initiatives.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
New York’s leaders should review the history of such efforts and take stock of some key realities before raising public expectations for universal pre-k.
Policymakers should acknowledge that underfunding services for those students who could benefit most for the sake of achieving universality is not good public policy.
The state should prioritize investments in high quality pre-k, which deliver the best long-term returns when they are made in intensive, high-quality programs for disadvantaged children.
Policymakers must recognize that making the program both richly-resourced and fully universal would impose a significant new fiscal burden on already highly taxed New Yorkers.
The state should consider targeted approaches, such as extending services to every child in districts with a child poverty rate above 25 percent, as they are less costly.
Key Data
As of March 2026, the FY 2027 Executive Budget provides approximately $1.7 billion in additional early childhood funding and childcare subsidies to expand pre-kindergarten and childcare vouchers.
As of March 2026, providing universal childcare would be significantly more expensive, costing ten times as much as the Governor's proposed $1.7 billion investment for fiscal year 2027.
As of April 2023, per-student spending on early childhood programs grew at an annual average of 6.4 percent between fiscal years 2016 and 2022, rising from $17,040 to $24,744.
As of April 2023, the Department of Education is projected to spend $1.4 billion, or 20 percent of its federal pandemic aid, on early childhood education between fiscal years 2021 and 2025.
As of July 2013, expenditures for preschool special education services grew 73 percent between school years 2001-02 and 2011-12, increasing from $792 million to $1.37 billion.
Sherif Soliman has more than 30 years of experience in government and currently serves as Budget Director of the New York City Mayor’s Office of Management and Budget. In this role, he oversees the city’s fiscal policy, including the development of the expense and capital budgets, the city’s bond and…
New York's fiscal year 2027 budget includes $1.7 billion for early childhood funding and childcare subsidies, which should be prioritized for families with the greatest financial need rather than universal programs. This targeted approach would help sustain funding while avoiding the significantly higher costs associated with universal childcare.
Recommendations related to Childcare
The State should target childcare funding for vouchers and programs for children 3 years and under to high-need, low-income families.
The State should direct limited childcare resources to families with the highest financial need rather than provide universal childcare.
Key Data
$1.7 billion
— Additional early childhood funding and childcare subsidies provided in the fiscal year 2027 executive budget.
2,000
— Number of two-year olds in New York City receiving subsidized care under the proposed budget.
10 times
— The estimated cost of universal childcare compared to the Governor's proposed funding level.
$263 billion is the size of the FY27 State budget proposed by Governor Hochul. With strong tax receipts, the State has enough to close next year's gap and put a dent in future gaps, plus fund universal childcare. But risks abound, including a structural budget gap and federal changes to…
1,039,069 is the number of kids under the age of five in New York who could ultimately qualify for free or subsidized childcare under the Hochul/Mamdani plan. How should the State and City design a flexible program that meets the needs of diverse families? How should it be phased? What…
State leaders are encouraged to prioritize fiscal discipline by shifting funds from ineffective programs rather than expanding spending on initiatives like child care. Policymakers should ensure that existing child care programs operate efficiently and focus any expansion efforts specifically on lower-income residents.
Recommendations related to Childcare
Ensure child care programs work well and focus expansion on lower income New Yorkers.
New York City's Department of Education has seen significant spending growth in early childhood education, with per-student spending on these programs increasing at an annual average of 6.4 percent between fiscal years 2016 and 2022. This expansion, largely supported by federal pandemic aid, now faces potential fiscal cliffs as these non-recurring funds expire, requiring the City to determine whether to maintain these programs with recurring resources or reduce them.
Recommendations related to Childcare
Identify priority programs funded by expiring federal pandemic aid—such as the expansions of 3-K for All and Pre-K for All Special Education—and be transparent about whether the DOE plans to replace the one-time federal funds with recurring City and State resources or to shrink or end the programs.
Evaluate and modify DOE programs and initiatives, including early childhood education, to prioritize those that deliver maximum impact to the target populations.
Consider per-student spending and recognize that declining enrollment in early childhood programs could yield flat or reduced total spending.
Key Data
$276 million
— Budgeted increase for early childhood programs in fiscal year 2023.
6.4 percent
— Annual average growth of per-student spending on early childhood programs between fiscal years 2016 and 2022.
$24,744
— Per-student spending on early childhood programs in fiscal year 2022.
$1.4 billion
— Amount of federal pandemic aid the DOE will spend on early childhood education in fiscal years 2021 through 2025.
18.9 percent
— Early childhood enrollment increase in school year 2019-20 with the expansion of 3-K for All.
$220 billion is the reported size of the New York State fiscal year 2023 budget that the Governor and Legislature adopted on April 10. The budget includes a property tax rebate and a tax holiday, and increases State spending about $14 billion, with more money for education aid, day care,…
The Mayor's preliminary budget for fiscal year 2023 includes plans to expand childcare and other services, raising questions about whether these new initiatives are sustainably funded. The administration's approach to these priorities will be critical to maintaining the city's fiscal health while managing the transition from previous policies.
This presentation was given by Maria Doulis, CBC’s Director of New York City Studies, at “The Measured City: Using Data to Improve New York City Government” Conference, on Oct. 30, 2013.
New York's current prekindergarten program is far from universal, with significant funding gaps and disparities in access across school districts. Expanding to a truly universal, high-quality program would impose a substantial fiscal burden, potentially costing up to $4 billion annually and requiring significant increases in local school tax levies.
Recommendations related to Childcare
New York’s leaders should review the history of such efforts and take stock of some key realities before raising public expectations for universal pre-k.
Policymakers should acknowledge that underfunding services for those students who could benefit most for the sake of achieving universality is not good public policy.
The state should prioritize investments in high quality pre-k, which deliver the best long-term returns when they are made in intensive, high-quality programs for disadvantaged children.
Policymakers must recognize that making the program both richly-resourced and fully universal would impose a significant new fiscal burden on already highly taxed New Yorkers.
The state should consider targeted approaches, such as extending services to every child in districts with a child poverty rate above 25 percent, as they are less costly.
Key Data
$4 billion
— Estimated annual cost to make the pre-k program both richly-resourced and fully universal in New York State.
$12,846
— Average per pupil spending in New Jersey’s Abbott districts in 2012, used as a benchmark for high-quality pre-k.
44.2%
— Percentage of four-year-olds who attended pre-k in New York in 2012.
232
— Number of school districts in New York that had not yet begun a UPK program in the 2013-14 school year.
$80.60
— Local tax burden per $1,000 of personal income in New York, which is 72 percent higher than the national average.
70%
— Percentage of students in New Jersey's Abbott districts living in households with incomes below the threshold for free- or reduced-priced lunch.
New York's preschool special education system faces significant challenges, including a fragmented delivery system and a lack of cost-containment incentives, which have contributed to a 73 percent increase in expenditures over a decade. Legislative action is needed to improve oversight, reduce fraud, and address conflicts of interest within the program to ensure resources are used effectively.
Recommendations related to Childcare
The state should approve bill A7302-A/S5568-A to improve the oversight of preschool special education program providers.
The state should require that every provider be audited at least once by the State Comptroller by March 31, 2018 to reduce fraud, abuse, and mismanagement.
The state should mandate that Executive Directors of providers be fully engaged and qualified for their positions.
The state should require a school district’s Committee on Preschool Special Education (CPSE) to provide consent in writing whenever the same program provider conducts the evaluation and provides services to avoid conflicts of interest.
The State Education Department should be tasked to complete a study of alternative reimbursement methodologies and monitoring protocols to identify further reforms.
Key Data
77,096
— The number of children receiving preschool special education services in the 2011-12 school year, representing a 27 percent increase over the previous decade.
19,836
— The number of preschoolers receiving more than one authorized service in 2011-12, reflecting a 91 percent increase in service intensity over the decade.
$1.37 billion
— The total expenditure for preschool special education services in 2011-12, which grew 73 percent over the decade.
700
— The number of agencies used by the State Education Department to provide services in 2012.
$12 to $38 per hour
— The range of rates for an hour of Special Education Itinerant Teacher (SEIT) services in the Western New York region in 2012.
$23 to $58 per hour
— The range of rates for an hour of Special Education Itinerant Teacher (SEIT) services in Long Island in 2012.
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