Education spending in New York encompasses the funding provided by state and local governments to support K-12 public school operations, capital projects, and student services. This page covers CBC’s work on school aid formulas, per-student spending trends, enrollment-based budgeting, class size mandates, and the allocation of resources to districts based on student need and local fiscal capacity.
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..
The City should fund schools based on actual enrollment and student need, which would save $400 million.
The City should merge schools whose enrollment has shrunk so much they require disproportionate administrative overhead, beginning with a close review of the 500 schools under 300 students.
The City should get relief from the State class size reduction mandate, which would save $1.2 billion.
The City should pause construction of new schools until administrative actions have been taken to increase utilization of existing schools.
The City should reestablish weighted student funding as the primary allocation method for school budgets.
Key Data
In an April 2026 op-ed, the CBC highlighted that the New York City Department of Education spends $42,000 per student, which is twice the national average.
According to testimony from March 2026, the State's class size reduction mandate required $170 million to be directed to the lowest need quartile of schools in school year 2024-2025, with projected funding for fiscal year 2027 rising to $1.6 billion.
A January 2025 report found that New York spent $36,293 per student in the 2024-25 school year, yet its fourth-grade students ranked 32nd in reading and 46th in math on national exams.
In December 2024, the CBC noted that New York State sends over $2 billion annually to wealthy school districts that already fully fund a sound basic education with their own local and federal resources.
During an August 2024 public hearing, the CBC highlighted that the $3.3 billion STAR program disproportionately benefits wealthier areas, with the top three deciles of wealth receiving $942 million compared to $501 million for the bottom three deciles.
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…
The Fiscal Year 2027 Executive Budget relies on short-term strategies to close fiscal gaps, even as city-funded spending is projected to grow by 28 percent, or $24.4 billion, between fiscal years 2025 and 2030. While the budget includes efforts to control rising special education and housing voucher costs, the strategy to stretch out class size reduction mandates continues to require increased spending on high performing, popular schools.
New York City's Department of Education spends $42,000 per student, which is double the national average, even as traditional public school enrollment has declined by 158,000. To address fiscal challenges, the city could save $1.2 billion by obtaining relief from state class size mandates and an additional $400 million by aligning school budgets with lower enrollment numbers.
Recommendations related to Education Spending
The city should seek relief from Albany’s class size mandate to unlock $1.2 billion while preserving smaller classes where they matter most.
The city should focus on aligning school budgets with declining enrollment to save $400 million.
Key Data
$42,000
— The amount the city Department of Education spends per student, which is twice the national average.
158,000
— The number of students by which traditional public school enrollment has declined.
63,000
— The number of students by which charter school enrollment has increased.
109,000
— The number of school-age children by which the population dropped in the past decade.
$1.2 billion
— Potential savings that could be unlocked by obtaining relief from Albany’s class size mandate.
$400 million
— Potential savings from aligning school budgets with declining enrollment.
New York State's budget includes significant increases in school aid, yet current formulas send $589 million to districts regardless of need or enrollment declines. To improve efficiency, the state should eliminate "hold harmless" provisions and minimum increases, while repealing the costly Class Size Reduction mandate to better align funding with actual student needs.
Recommendations related to Education Spending
The State should eliminate hold harmless and minimum increase provisions in school aid formulas.
The State should revise formulas to better reflect student need and local capacity so that State aid is allocated effectively.
The State should reduce State aid to self-funding school districts.
The State should repeal the Class Size Reduction mandate and extend Mayoral control of schools by four years.
Key Data
$589 million
— Estimated cost of minimum increases in school aid in fiscal year 2027 that send funds to districts regardless of enrollment declines or increasing wealth.
$2.9 billion
— Estimated amount of State education aid provided to districts that can self-fund a sound basic education in fiscal year 2027.
$1.4 billion
— Increase in school aid driving overall State spending growth.
$500 million
— Increase in school aid proposed by one-house budgets without improved targeting.
New York City's public school enrollment has declined significantly, yet school budgets remain disconnected from these trends due to 'hold harmless' funding policies. To address budget gaps, the City should align funding with actual enrollment, consolidate underutilized schools, and seek relief from state-mandated class size reductions.
Recommendations related to Education Spending
The City should fund schools based on actual enrollment and student need, which would save $400 million.
The City should merge schools whose enrollment has shrunk so much they require disproportionate administrative overhead, beginning with a close review of the 500 schools under 300 students.
The City should get relief from the State class size reduction mandate, which would save $1.2 billion.
The City should pause construction of new schools until administrative actions have been taken to increase utilization of existing schools.
The City should reestablish weighted student funding as the primary allocation method for school budgets.
Key Data
$400 million
— The amount the City would likely save annually if it resumed funding schools based on the number and needs of students.
$1.2 billion
— The amount the City could save annually if the State rescinded the class size reduction mandate.
118,137
— The number of students by which total enrollment (including public, private, charter, and home instruction) declined between school years 2014–15 and 2023–24.
163,046
— The number of students by which public school enrollment decreased between school years 2014-15 and 2023-24.
$18,294
— The average per-student cost for small schools with fewer than 400 students.
$870
— The cost per square foot for building new schools, which the City should stop doing for the time being.
The City should pursue fiscal savings by securing relief from the State's class size mandate and adjusting school funding to reflect declining enrollment. These measures are part of a broader strategy to avoid tax increases and address the city's fiscal challenges while maintaining essential services.
Recommendations related to Education Spending
The City should secure relief from the State class size mandate to achieve fiscal savings.
The City should adjust school funding for declining enrollment to generate savings.
Key Data
$400 million
— Potential savings from adjusting <b>school funding for declining enrollment</b>.
$1 billion
— Potential savings from securing relief from the <b>State class size mandate</b>.
New York faces a significant structural budget gap and must prioritize spending to avoid a fiscal crisis, specifically by reallocating funds from ineffective programs and wealthy school districts. By ending aid increases to districts with declining enrollment to save $500 million and redirecting $2.5 billion in aid from affluent districts, the state can improve educational accountability and fiscal stability.
Recommendations related to Education Spending
Improve accountability to get more than middling results from per-student education spending that is twice the national average.
Stop protecting sacred cows like school aid.
End aid increases to districts with declining enrollment to save $500 million annually.
Redirect $2.5 billion in state aid provided to wealthy districts that already self-fund a sound basic education.
Key Data
$500 million
— Annual savings from ending aid increases to school districts with declining enrollment.
$2.5 billion
— State aid provided to wealthy districts that already self-fund a sound basic education, which should be redirected.
Mayoral candidates were surveyed on their approaches to New York City's fiscal and operational challenges, including the impact of per-student spending on public school achievement. The responses highlight varying strategies for balancing the city's budget, managing capital investments, and addressing the efficiency of the Department of Education and other major agencies.
Recommendations related to Education Spending
The Department of Education should be reformed to improve educational outcomes, accessibility and address needs of our communities.
New York City should focus on better leadership rather than increasing per-student spending, as the city already spends over $38,000 per student.
The city should address the bloated Department of Education bureaucracy to ensure funds reach the classroom rather than just increasing spending.
The city should focus on increasing resources for kids in elementary schools with the worst proficiency rates in reading and math.
The city should increase per-student spending because more funding means more staff, more resources, and better student outcomes.
Key Data
$38K
— The amount New York City currently spends per student annually.
14%
— The current share of capital spending allocated to Education in the Ten-Year Capital Strategy for Fiscal Years 2026-2035.
80%
— The proficiency rate goal for elementary schools in reading and math within four years.
$111 billion
— The total value of the City's five-year capital program.
The next mayoral administration should prioritize evidence-based programs in education while avoiding wasteful capital spending by utilizing redistricting instead of constructing new schools. These strategies aim to improve service delivery and ensure infrastructure investments are both necessary and cost-effective.
Recommendations related to Education Spending
The next mayor should focus on what works by prioritizing evidence-based programs in education, housing, homelessness, and mental health.
The next mayor should avoid waste by choosing standardized designs and not building new schools when redistricting can solve the problem.
Key Data
$115 billion
— The City's annual spending on services, which should be made to count through improved performance and prioritization.
New York State's budget allocates nearly two-thirds of its funds to Medicaid and education, necessitating strategic decisions to ensure long-term fiscal stability. To improve efficiency, funding should be better aligned with student needs rather than increasing allocations for wealthy districts or those with declining enrollment.
Recommendations related to Education Spending
For education, the state should better align funding with student need rather than increasing funds for very wealthy districts or those with declining enrollment.
Key Data
Almost two-thirds
— The portion of the state budget that is allocated to Medicaid and education.
Federal aid accounts for $7.4 billion of New York City's fiscal year 2026 preliminary budget, with a significant portion supporting essential services like education, childcare, and school food programs. Potential reductions in this federal support threaten the stability of these programs, necessitating proactive fiscal management to protect critical services for residents.
Key Data
$1.9 billion
— Federal funding allocated to the Department of Education in the fiscal year 2026 budget.
$679 million
— Federal Title I funding provided to the Department of Education.
$423 million
— Federal funding for the Free & Reduced Price Lunch program.
$291 million
— Federal funding for the Education for All Handicapped Children Act (EHA).
$115 million
— Federal funding for the School Breakfast Program.
$7.4 billion
— Total federal funding included in the fiscal year 2026 preliminary budget, which supports education and other services.
New York State spends the most per student in the nation, yet student performance remains average, indicating that increased funding has not translated into better outcomes. The state should prioritize reallocating aid from wealthy districts to those in need while strengthening oversight and accountability systems to ensure resources effectively support student achievement.
Recommendations related to Education Spending
The State should ramp up its efforts to examine the relationships between human and fiscal resources, curriculum, student needs, accountability systems, and achievement.
New York should rigorously examine and, as beneficial, reform its accountability system, including the needs assessments developed for poor-performing schools and the interventions intended to improve performance.
The State should enhance its support and technical assistance to promote and spread best practices to improve student outcomes.
New York should better target resources based on need, potentially reallocating funds from wealthy districts that fully fund a sound basic education to low-wealth, poor-performing districts.
The State should examine whether district-led improvement plans are as effective as those developed by the New York State Education Department.
Key Data
$36,293
— The average amount New York school districts are set to spend per student in the 2024-25 school year.
91%
— The amount by which New York's per-student spending exceeded the national average in 2021-22.
$2.8 billion
— The amount of state aid provided in school year 2023-24 to districts that already fully fund a sound basic education with local and federal revenue.
21%
— The increase in per-student spending in New York since the 2020-21 school year.
New York State faces a $15.6 billion structural imbalance, necessitating major savings plans to manage the growth of education aid and Medicaid costs. Ensuring long-term fiscal stability requires restraining spending to avoid destabilizing state finances while pursuing tax reductions.
Recommendations related to Education Spending
Major savings plans are needed to reduce the growth in education aid to ensure the program remains affordable and sustainable.
New York spends more per student than any other state, yet student performance remains average, necessitating a shift in funding to better target high-need districts. The state should reform its school aid formulas, including eliminating the STAR program and adjusting the local share calculation, to ensure sustainable and equitable education funding.
Recommendations related to Education Spending
New York needs to restrain State education spending to make it affordable and better targeted to high-need districts.
The State should take more steps to ensure New Yorkers are getting better educational outcomes for their nation-leading per-student spending.
The State should phase out hold harmless, revise outdated indices, and remove arbitrary floors and ceilings to better target Foundation Aid to districts based on need.
The State should eliminate the STAR program because it directs more per-student funding to high-wealth districts.
The Governor and the Legislature should set the State on a path to sustainable school funding and direct aid to the districts that need it most.
The State should take a more active role in promoting performance, increasing transparency, and improving accountability in education.
Key Data
$40 billion
— The amount of annual State education spending that New York needs to restrain to make it affordable and better targeted.
$2 billion
— The amount of money New York sends annually to districts that already provide a sound basic education with their own and federal resources.
97 - that's the number of days between this conversation and the release of the Governor's Fiscal Year 2026 Executive Budget. But how the State will close its $16 billion structural gap isn't the only important issue facing New York State. How will the State buttress resiliency, reduce greenhouse gas…
New York State's school aid formulas currently rely on outdated data and arbitrary constraints that fail to accurately account for local fiscal capacity or student needs. Reforming these formulas to better reflect local circumstances and redistributing expense-based aids and STAR funding proportionally to Foundation Aid would ensure resources are more effectively targeted based on wealth and student requirements.
Recommendations related to Education Spending
Formulas should more accurately estimate a district’s capacity and willingness to raise revenue and should use the actual local contribution as the expected minimum local contribution when it exceeds the estimate.
Calculations of local fiscal capacity should account for localities’ other spending obligations—including State mandates such as Medicaid, and others driven by economic or social factors such as poverty and unhoused residents—by adjusting the expected local contribution.
Indices of need and regional cost should be updated regularly and be sufficiently granular to capture variation.
The State should eliminate the hold harmless provision in the school aid formula.
The State should eliminate arbitrary floors and ceilings in the school aid formula.
School districts’ building and transportation costs should be explored further to identify reforms that would incentivize efficiency of spending and to improve the funding distribution to better reflect local needs and resources.
Key Data
152
— Number of school districts that contributed enough local resources to provide a sound basic education before receiving any State aid in the 2023-24 school year.
$8 billion
— Amount of costs for the State-run Medicaid program shifted to counties and local taxpayers, which impacts local fiscal capacity for school aid.
nearly $6 billion
— Total amount of Building and Transportation Aid, the two largest expense-based aid categories.
$447 million
— Amount allocated in Library, Textbook, Software, and High Tax Aids in the 2024-25 school year without accounting for local wealth.
$3.3 billion
— Amount of education funding shifted from locally-raised property tax revenue to the State each year by the STAR program.
$1,674
— Average amount more per student that districts in the lowest wealth decile would receive if STAR funding were reallocated proportional to Foundation Aid.
New York State's school aid funding formulas, including Foundation Aid, expense-based aids, and the School Tax Relief (STAR) program, fail to effectively distribute resources based on student need and local capacity. Reallocating these funds by prioritizing need and updating metrics would shift hundreds of millions of dollars to lower-wealth districts, ensuring a more equitable distribution of state resources.
Recommendations related to Education Spending
The State should quickly phase-out the hold harmless provision to align Foundation Aid with district enrollment.
The State should revise the expected local contribution to be the higher of the district’s actual contribution or the district’s fiscal capacity.
The State should eliminate the STAR program to better allocate State resources to where they are needed most.
The State should eliminate High Tax Aid.
The State should more accurately measure a district’s capacity and willingness to raise revenue, and use the actual local contribution as the expected minimum local contribution when it exceeds the measure.
The State should account for a locality’s other spending obligations—including State mandates such as Medicaid, and those driven by economic or social factors such as poverty and unhoused residents—by adjusting the expected local contribution.
The State should ensure that indices of need and regional cost are updated regularly, are sufficiently granular to capture variation, and consider that a well-constructed metric with a limited number of weights may be more effective than a metric with many more weights.
The State should remove arbitrary floors and ceilings that distort the funding distribution of Foundation Aid and expense-based aid categories.
The State should adjust aid for library, textbooks, and software to account for district wealth either by modifying the formula or folding the funding into Foundation Aid.
The State should update district poverty estimates and regional cost measures for a more accurate assessment of need.
Key Data
$6 billion
— Total amount for Building and Transportation Aid in the coming school year.
$1,805
— Statewide student transportation expenditures per student in 2022, the highest of any state.
$447 million
— Total funding for Library, Textbook, Software, and High Tax Aid in the 2024-25 school year.
$3.3 billion
— Annual School Tax Relief (STAR) program funding.
$135 million
— Increase in funding for the four lowest wealth deciles if Library, Textbook, Software, and High Tax Aid were reallocated proportionally to Foundation Aid.
$90 million
— Decrease in funding for the top three wealth deciles if Library, Textbook, Software, and High Tax Aid were reallocated proportionally to Foundation Aid.
New York's school aid formulas, which total $38.6 billion, are currently flawed because they fail to accurately account for district wealth and student needs, often directing funds to wealthier districts rather than those requiring the most support. Reforming these systems, including eliminating the "hold harmless" provision and the regressive School Tax Relief (STAR) program, is essential to ensure fiscal sustainability and equitable resource allocation.
Recommendations related to Education Spending
Eliminate or phase-out the hold harmless provision to align Foundation Aid with district enrollment.
Revise the expected local contribution calculation to better reflect districts' actual fiscal capacity and willingness to generate local resources.
Update district poverty estimates and regional cost measures for a more accurate assessment of need.
Reassess arbitrary floors and ceilings to ensure they are limited to extreme situations and do not undermine the intent of allocating school aid based on need and local capacity.
Adjust library, textbook, and software aids to account for district wealth either by modifying the formula or folding the funding into Foundation Aid.
Eliminate High Tax aid, which is fixed and not tied to an educational expense.
Eliminate the School Tax Relief (STAR) program due to its regressive nature and significant cost.
Key Data
$38.6 billion
— Total funding for Foundation Aid, expense-based aids, and the School Tax Relief (STAR) program for the upcoming school year.
$16 billion
— The State's projected structural budget gap by fiscal year 2028.
$2.8 billion
— State aid provided in the 2023-24 school year to districts that fully fund a sound basic education before receiving any State funding.
$10.4 billion
— Total expense-based aids for the current year, including funding for building construction, student transportation, and vocational programs.
$3.3 billion
— Estimated cost of the School Tax Relief (STAR) program for the next year.
$20.6 million
— Additional funding provided by the State for expense-based aids compared to what the formulas would otherwise determine.
New York State's education funding system currently directs billions of dollars to wealthy districts that do not need the support, while outdated formulas fail to accurately reflect student poverty and regional costs. Reforming these mechanisms, including eliminating programs like the School Tax Relief (STAR) and High Tax Aid, would allow the state to better target resources toward actual educational needs and fiscal sustainability.
Recommendations related to Education Spending
The state should quickly phase out the hold harmless provision to align Foundation Aid with district enrollment and wealth.
The state should revise the expected local contribution to be the higher of the district’s actual contribution or the district’s fiscal capacity.
The state should update district poverty estimates and regional cost measures for a more accurate assessment of need.
The state should reassess arbitrary floors and ceilings in formulas to ensure they are limited to extreme situations.
The state should allocate library, textbook, and software aids based on wealth by modifying the formula or folding the funding into Foundation Aid.
The state should eliminate High Tax Aid because of its regressive allocation and lack of a clear function.
The state should eliminate the School Tax Relief (STAR) program to better allocate State resources to where needed most.
Key Data
$16 billion
— The size of the structural budget gap in New York State.
$38.6 billion
— The total amount of education aid allocated by the State.
$2 billion
— The amount of State aid sent every year to districts that already spend enough local resources to provide a sound basic education.
$3 billion
— The annual cost of the School Tax Relief (STAR) program.
$224 million
— The total funding for library, textbook, and software aids.
$223 million
— The total funding for High Tax Aid.
The fiscal year 2025 adopted budget increases City-funded spending by $6.1 billion, or 7.5 percent, over fiscal year 2024, while failing to include the full recurring costs of special education and school nurses. This budget, which totals $116.1 billion, relies on one-year funding for recurring programs, obscuring the true long-term fiscal requirements.
Recommendations related to Education Spending
The City should include the full recurring costs of special education and school nurses in the budget to avoid underestimating future spending.
New York City's Department of Education spending is projected to reach $39.8 billion in fiscal year 2024, marking a 15.2 percent increase since 2020. Despite declining enrollment, which remains 10.4 percent below pre-pandemic levels, per-student spending is expected to rise to $39,304 in fiscal year 2025, a 26.3 percent increase over the 2020 figure.
Key Data
$39,304
— Per-student spending at K-12 DOE schools is expected to reach this amount in fiscal year 2025.
26.3%
— The increase in per-student spending at K-12 DOE schools since fiscal year 2020.
$39.8 billion
— Total DOE expenditures projected for fiscal year 2024.
15.2%
— The increase in total DOE expenditures since fiscal year 2020.
10.4%
— The percentage by which K-12 DOE enrollment remains below pre-COVID levels.
$2.1 billion
— The proposed increase in City-funded DOE spending for fiscal year 2025.
New York State's school aid has grown rapidly, with Foundation Aid increasing by 9.2 percent annually over the past three years, necessitating reforms to ensure sustainable growth. Proposed changes to the Foundation Aid formula, including phasing out the 'hold harmless' provision and adjusting the inflation factor, would moderate growth to 2.1 percent while better targeting resources to districts with the greatest need.
Recommendations related to Education Spending
The State should enact the phaseout of the hold harmless provision to ensure Foundation Aid better reflects current school district demographics.
The State should consider changes to expense-based aid categories that do not incorporate district need in their allocation to achieve necessary spending moderation.
The State should eliminate the School Tax Relief (STAR) program, which currently results in increased funding for wealthier districts.
Key Data
$38.1 billion
— Total State school aid, including Foundation Aid, expense-based aids, and STAR, in the coming school year.
$413 million
— Savings in school year 2024-25 from proposed changes to the Foundation Aid formula.
$2.4 billion
— Amount of State aid allocated to 145 districts that can already fully fund a sound basic education with local and regular federal resources.
$15,761
— Per-student State aid in the coming school year.
$11.4 billion
— Amount of temporary federal COVID aid received by school districts.
$6.6 billion
— Total increase in State school aid over the three-year period of rapid growth.
$39.5 billion is spent by NYC annually to educate our students. The New York City Public Schools has an enormous and challenging task: educate and develop 900,000 students from a wide diversity of backgrounds and needs. Are we getting the return we need on our dollars? How are our students…
New York City's fiscal year 2025 budget faces a $3.6 billion shortfall, with significant portions of this gap stemming from underfunded Department of Education programs previously supported by federal COVID aid. To ensure fiscal stability, the city must prioritize funding for essential services while transparently shrinking or eliminating programs that cannot be sustained by available resources.
Recommendations related to Education Spending
The City should prioritize and fund effective and impactful programs, shrink or eliminate less critical and effective programs, and increase efficiency.
To be fully transparent, the budget should include funding for all planned programs and acknowledge that under- and un-funded programs will shrink or end.
The City should implement an additional PEG in the Executive Budget and shrink or eliminate programs that the available resources cannot fully support.
The City Council should ensure that its proposals for added or modified spending are affordable based on fully funding or reducing the current set of planned programs.
Key Data
$675 million
— Federal-funds fiscal cliff for programs, almost entirely at the Department of Education.
$95 million
— Funding needed to expand Pre-K for All Special Education programs.
$87 million
— New City-funds fiscal cliff for school nurses.
$60 million
— Funding for Community Schools currently supported by federal COVID funds.
$22 million
— New City-funds fiscal cliff for school cleaning.
$13 million
— Funding for bilingual education expansion currently supported by federal COVID funds.
New York faces significant structural budget gaps, driven by spending growth in areas like education aid and Medicaid that outpaces revenue. To address these fiscal challenges, state school aid should be reallocated to prioritize districts with higher-need students rather than continuing to fund wealthy districts.
Recommendations related to Education Spending
State school aid should be better targeted to districts with higher-need students, instead of funneling billions of dollars to wealthy districts with strong local funding.
New York State school aid increased by 8.8 percent to $37.4 billion for the 2023-24 school year, with per-pupil funding rising by 10.2 percent. While $2.8 billion is directed to districts that already fully support a Sound Basic Education, an additional $8.6 billion in state aid is allocated to other districts in excess of that level.
Key Data
8.8%
— The increase in State school aid from the previous year.
10.2%
— The rise in per-pupil State aid.
$2.8 billion
— State aid directed to 152 districts that fully support a Sound Basic Education with local and regular federal funding.
$8.6 billion
— State aid allocated to other districts in excess of the Sound Basic Education level.
$9.6 million
— The total Sound Basic Education shortfall for five districts where per-pupil funding is negative.
$11.4 billion
— The total for all other districts’ State aid in excess of a Sound Basic Education.
New York State's education spending has reached a record $85.8 billion, or $35,095 per pupil, despite declining enrollment and a lack of commensurate improvements in student outcomes. The state should reallocate the $2.8 billion in aid currently directed to wealthy districts that can already afford a sound basic education and implement a robust performance management system to ensure fiscal accountability.
Recommendations related to Education Spending
The State should reduce or reallocate aid to wealthy school districts that are able to provide a Sound Basic Education with local resources and regular federal aid.
The State should implement a comprehensive performance management system for school districts that uses robust metrics to track activities and results, identifies and spreads best practices, and appropriately holds districts accountable.
The State should distribute expense-based aids based on need rather than on a per-pupil basis, district spending, or other factors.
The State should rein-in spending growth to help balance the budget, as significant budget gaps are projected beginning next year.
Key Data
$85.8 billion
— Total spending on elementary and secondary education for the 2023-24 school year.
$35,095
— Total spending per pupil for the 2023-24 school year.
$2.8 billion
— Amount of State aid provided to 152 school districts that already fully fund a Sound Basic Education with local and regular federal resources.
8.8%
— The percentage increase in New York State school aid for the 2023-24 school year.
10.2%
— The percentage increase in per-pupil State aid for the 2023-24 school year.
$9.6 million
— The total revenue shortfall for the five districts statewide that lack adequate resources to provide a Sound Basic Education.
New York State Budget Fiscal Year 2024 Major Actions and Fiscal Risks As of First Quarter Update New York City Fiscal Year 2024 Adopted Budget and Outlook
The City's budget process relies on unrealistic spending projections, particularly regarding special education, which has consistently exceeded adopted budget levels for many years. To ensure fiscal stability, the budget must incorporate accurate estimates for these functions rather than continuing the practice of underbudgeting.
Recommendations related to Education Spending
The City must include realistic annual spending estimates for special education to ensure the budget reflects actual costs.
The City should cease fanciful budgeting for special education, as these costs have exceeded adopted budget levels for many years.
New York City's Department of Education budget reached $36.9 billion in fiscal year 2023, even as K-12 enrollment declined by over 141,000 students between 2015 and 2022. This divergence has driven per-student spending to over $37,000, necessitating careful management of expiring federal pandemic aid and future budget gaps.
Recommendations related to Education Spending
Consider per-student spending and recognize that declining enrollment could yield flat or reduced total spending.
Diligently manage the impact of enrollment declines in individual schools with appropriate changes in funding and staffing to ensure the smoothest possible continuity and equity of services.
Identify priority programs funded by expiring federal pandemic aid 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 to prioritize those that deliver maximum impact to the target populations.
Key Data
$36.9 billion
— The total DOE budget for fiscal year 2023.
32.5 percent
— The growth in DOE spending between fiscal years 2016 and 2022.
141,000 students
— The decline in K-12 DOE enrollment between school years 2015-16 and 2021-22.
$37,000
— The amount spent per K-12 DOE student in fiscal year 2022.
$12.0 billion
— The estimated City budget gap in fiscal year 2026.
$421 million
— The total of the 3 percent reduction in City-funded spending directed by the Program to Eliminate the Gap (PEG) for fiscal year 2024.
New York City's Department of Education faces a budget of $36.5 billion for fiscal year 2024, even as enrollment has dropped by over 141,000 students since the 2015-16 school year. With per-student spending rising to over $37,000 in 2022 and projected to reach $41,069 by 2026, the city must address the fiscal cliff created by expiring federal pandemic aid and evaluate program effectiveness.
Recommendations related to Education Spending
The City should consider spending levels per student rather than aggregate levels and recognize that declining enrollment could yield flat or reduced total spending.
The City should identify priority programs funded by expiring federal COVID-19 pandemic aid and be transparent about whether it plans to replace the one-time federal funds with recurring resources or shrink or end the programs.
The City should evaluate Department of Education programs and initiatives to ensure that they are delivering maximum impact to the target populations and modify programs accordingly.
Key Data
$37,000
— Per-student spending in fiscal year 2022 for K-12 Department of Education schools.
$41,069
— Projected per-student spending by fiscal year 2026, assuming continued enrollment declines.
$500 million
— Amount the City consistently underbudgets annually for Carter Cases that fund private school tuition for special education students, pupil transportation, and charter schools.
$36.8 billion
— Total Department of Education budget for fiscal year 2023.
141,000
— Number of students lost by K-12 schools between school years 2015-16 and 2021-22.
$2.7 billion
— Amount of federal COVID-19 pandemic aid spent by the Department of Education in fiscal year 2022.
New York City faces significant expenditure risks in its budget, particularly regarding underfunded mandates for special education and pupil transportation. These recurring costs, alongside fiscal cliffs related to the expansion of 3K and special education pre-K, threaten to widen future budget gaps if not properly addressed.
Key Data
$800 million
— The amount the City may increase fiscal year 2023 spending by, mainly for Carter Cases and pupil transportation.
$1.1 billion
— The total value of fiscal cliffs next year, which include funding for expansion of 3K and special education pre-K.
$1.9 billion
— The total value of fiscal cliffs in fiscal year 2026, which include funding for expansion of 3K and special education pre-K.
$1.1 billion
— The amount by which underfunded programs, including Carter Cases and pupil transportation, could increase spending annually in the outyears.
New York is phasing in a 32% increase in education aid, yet the state continues to provide over $3 billion annually to wealthy districts that can already afford to self-fund a sound basic education. To improve equity and stabilize the budget, the state should reallocate these funds by better targeting aid to high-need districts rather than basing reimbursements on local spending for transportation and construction.
Recommendations related to Education Spending
The state should better target aid to high-need districts, including money that now reimburses districts on how much they spend for transportation and construction rather than student need.
The state should reevaluate assistance to wealthy districts, especially those that receive over $3 billion annually despite already self-funding a sound basic education.
The state must control education spending, which comprises about 50% of the budget, to help limit annual spending growth to 2% through 2028.
Key Data
32%
— The percentage increase in education aid that the state began phasing in during 2021.
$3 billion
— The amount of annual aid received by wealthy districts that already self-fund a sound basic education.
50%
— The portion of the state budget comprised of Medicaid and education spending.
New York State continues to increase school aid, with total aid reaching $34.4 billion, yet the state lacks adequate systems to monitor performance and hold districts accountable for student achievement. Despite significant funding, the state directs billions to wealthy districts that already have sufficient local resources, while failing to effectively target aid to those with the greatest need.
Recommendations related to Education Spending
The State should stop increasing aid to wealthy districts that fund a Sound Basic Education through local revenue and regular federal aid.
The State should consider freezing aid to better-off districts which already receive State aid in excess of the amount needed for a Sound Basic Education.
The State should reform both Foundation Aid and many of the expense-based aids to direct more of the funds to high-need districts.
The State should reduce over time the aid it provides to the highest-wealth districts that already receive enough local and federal funding for a Sound Basic Education.
The State should implement a robust performance management system to track outcomes, quality, and efficiency of services across districts and require under-performing districts to implement action plans to improve their performance.
Key Data
$34.4 billion
— Total New York State school aid for the school year.
9.4 percent
— The increase in per-pupil State aid this year as enrollment declines.
$3.1 billion
— Amount of State aid directed to 176 districts that already fund a Sound Basic Education with local and regular federal resources.
$10.5 billion
— Amount of State aid provided to districts in amounts exceeding what is needed to fund a Sound Basic Education.
$14.7 million
— The funding shortfall for the only four districts remaining below the level needed to provide a Sound Basic Education.
$3.8 billion
— Estimated federal COVID-related education aid for the 2022-23 school year.
New York State school aid increased by 6.7% to $34.4 billion for the 2022-23 school year, even as student enrollment declined. Of this total, $3.1 billion is directed to 176 wealthy districts that can already support a Sound Basic Education, while an additional $10.4 billion is distributed to other districts in excess of that level.
Key Data
$34.4 billion
— Total State school aid for the 2022-23 school year.
9.4%
— Increase in per-pupil State aid due to declining enrollment.
$3.1 billion
— State aid directed to 176 wealthy districts that can fully support a Sound Basic Education.
$10.4 billion
— State aid provided to other districts in excess of the Sound Basic Education level.
The proposed legislation to mandate class size limits in New York City public schools would impose significant financial burdens, with operating costs for grades kindergarten through five estimated at at least $500 million annually. Instead of this rigid mandate, the state should prioritize accountability systems that focus on student outcomes and allow districts to implement evidence-based interventions tailored to their specific needs.
Recommendations related to Education Spending
The Governor should veto A.10498/S.9460, which would set class size limits in New York City public schools.
Accountability systems should be based on outcomes and multiple performance metrics rather than prescribing one specific education strategy.
Accountability systems should be universal and not treat one district differently, providing flexibility to assess districts based on their different needs.
Districts should be allowed to choose a portfolio of evidence-based interventions tailored for their students and schools.
Key Data
$500 million
— The estimated annual operating cost for reducing class size to the new limit in just grades kindergarten to five.
$18 million
— The amount the City has already dedicated to a class size reduction pilot in 72 schools.
2.6 million
— The total number of students in New York State.
New York State's fiscal plan faces long-term instability due to rising costs in key areas like school aid and Medicaid, which threaten to create significant budget gaps once temporary tax increases expire. To preserve service quality and fiscal health, the state must implement performance management and develop strategies to control the growth of these major spending categories.
Recommendations related to Education Spending
The State should actively develop plans to restrain education spending growth while delivering needed services and quality.
$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 New York State fiscal year 2023 budget negotiations should prioritize implementing a performance management system to track results for state programs, including the significant federal and state funding increases for education. Leaders are urged to allocate the available $6 billion in flexible funding while ensuring that any additional recurring spending is offset by savings to avoid future budget gaps.
Recommendations related to Education Spending
Final negotiations should include provisions to manage State programs actively to deliver results and to report publicly metrics of State performance, including the massive federal and State funding increase for education.
The State’s leaders should focus on allocating the likely more than $6 billion in flexible funding for the new year in addition to the planned school aid increases.
A performance management system should be implemented to help lawmakers make fiscal and programmatic decisions regarding the massive federal and State funding increase for education.
Key Data
$6 billion
— The amount of flexible funding available for the new year, which is in addition to planned school aid increases.
New York's state budget proposals include significant increases in spending, with a portion of the growth driven by a multi-year agreement to expand education aid. Despite having the highest per-pupil school aid spending in the country, the state lacks a comprehensive management and accountability system to ensure these funds are used efficiently.
Recommendations related to Education Spending
The Governor and Legislature should diligently manage and provide oversight of funded programs, including education aid, by developing plans, identifying goals, measuring activities and results, and ensuring accountability by managers and local governments.
It is past time to implement statewide performance measurement and management to ensure that high levels of school aid spending are delivering results efficiently for New Yorkers.
The Governor and the Legislature should adopt a budget that keeps to the Executive Budget’s top line on spending, which would help stabilize the state's fiscal outlook while continuing to fund priorities like education aid.
Key Data
$2.2 billion
— The amount of spending growth in fiscal year 2023 attributed to continuing the agreement to increase education aid.
$4 billion
— The amount of additional tax revenue generated annually to fund massive increases in State school aid spending.
$1,169 million
— The amount of school aid used as an offset in fiscal year 2021.
New York State's school aid is projected to increase significantly, reaching $38.4 billion by fiscal year 2027, yet the state lacks mechanisms to ensure this nation-leading spending improves student outcomes. To address this, the state should prioritize targeting aid to high-need districts while eliminating "hold harmless" provisions that continue to fund wealthy districts that can already afford basic education.
Recommendations related to Education Spending
The Legislature should work to better target school aid to high-need districts, shifting some expense-based aids to foundation aid, eliminating the hold harmless and restraining aid to wealthy districts.
The State should eliminate the hold harmless provision and restrain aid to wealthy districts that receive billions in aid per year despite already self-funding a sound basic education.
The Legislature and Governor should work together to enact a performance management system to ensure the massive influx of school aid delivers commensurate results.
Key Data
$38.4 billion
— Projected state school aid for fiscal year 2027.
$29.1 billion
— State school aid for the current school year.
$11.4 billion
— Extraordinary federal aid that districts will spend over the coming years.
$2.7 billion
— Annual aid received by wealthy districts that already self-fund a sound basic education.
32%
— Projected increase in state school aid from the current school year to fiscal year 2027.
New York City expects to receive over $22 billion in federal COVID-19 aid, necessitating a robust public tracker to ensure accountability and maximize impact. The current lack of transparency is highlighted by the inability to track specific Department of Education expenditures, such as $350 million for academic recovery, $251 million for special education, and $163 million for supplies and materials.
Key Data
$163 million
— spent by the Department of Education on supplies and materials.
$83 million
— spent by the Department of Education on pedagogical salaries.
$350 million
— allocated for academic recovery for public schools.
$251 million
— directed by the City to special education including afterschool and Saturday programs.
$78.5 million
— in general education salary expenditures for pedagogical staff in fiscal year 2021.
$12.0 million
— in general education salary expenditures for temporary staff in fiscal year 2021.
New York schools are receiving approximately $13 billion in one-time federal COVID aid, adding to already high recurring state spending that is double the national average per pupil. To ensure these funds improve student outcomes, the state must implement rigorous performance management, target resources to the highest-need students, and evaluate programs to determine their effectiveness.
Recommendations related to Education Spending
The State should use a rigorous performance management process to oversee school aid spending to ensure it has the commensurate impact on student learning.
The State should monitor how funds are used, set goals, monitor results against those goals, and reallocate resources and change programs when results are unsatisfactory.
Goals and results for school aid should focus on measuring and reversing pandemic-related learning loss, accelerating achievement compared to prior achievement and national benchmarks, and reducing education disparities.
Initiatives should be evaluated to identify what works so programs and learning strategies can be either replicated or terminated.
Any future increases in school aid should only be targeted to districts, schools, and students with the highest needs.
Key Data
$13 billion
— One-time federal COVID aid funds provided for New York’s schools.
New York City faces a $5 billion annual budget gap, requiring long-term planning to maintain programs like 3-K education once temporary federal aid expires. To ensure accountability, the administration should provide detailed public reporting on the impact of $13 billion in COVID federal aid, specifically regarding its effectiveness in reversing pandemic-related learning loss and improving student achievement.
Recommendations related to Education Spending
The administration should make public detailed data on federal COVID revenues, expenditures and program activities and outcomes to show whether state education aid is accelerating achievement and reducing disparities.
The city must make greater efforts to stabilize the budget when COVID federal aid funding for 3-K education and other programs runs out.
Key Data
$13 billion
— The amount of COVID federal aid that the administration should report on to determine if it is effectively reversing pandemic-related learning loss and improving state education aid outcomes.
$5 billion
— The amount of the annual budget gap the city faces starting next year, which threatens the long-term sustainability of programs like 3-K education once federal aid runs out.
New York schools are receiving record levels of funding, including a significant influx of federal pandemic aid, necessitating a focus on performance measurement to ensure these resources drive student achievement. To maintain long-term fiscal stability, the state should prioritize directing aid to districts with the greatest needs while reducing support for wealthy districts that can already afford basic education costs.
Recommendations related to Education Spending
The State should set goals, track performance, evaluate initiatives, and adjust programs and spending as necessary to ensure students benefit from the funding increase.
The State should focus funding on districts with the greatest need, and reduce aid and aid increases to wealthy districts.
The Legislature, Governor, and Comptroller should work together to make sure that all recurring and one-time aid is tracked and reported in detail.
The State should implement a performance measurement and management system to help increase achievement, reverse learning loss, and reduce disparities.
Key Data
$11.4 billion
— Amount of one-time federal pandemic aid to be spent over four years.
$2.9 billion
— Increase in State school aid from school year 2020-21 to 2021-22.
$32,352
— Total per pupil spending for the school year.
$3.5 billion
— The size of the fiscal cliff the State will face once extraordinary federal aid is depleted.
168
— Number of districts that receive sufficient aid from local and recurring federal sources to finance a sound basic education.
$2.5 billion
— Amount of State aid going to the 168 districts that already have sufficient local and federal funding.
New York State has significantly increased school funding, with state aid rising to $32.5 billion and an additional $11.4 billion in federal pandemic aid allocated to districts. To ensure these resources effectively address learning loss and improve student outcomes, the state must implement rigorous performance management, accountability processes, and targeted funding strategies.
Recommendations related to Education Spending
The State should take significant steps to ensure that the increases in recurring State and non-recurring federal funds drive substantial improvements in educational outcomes.
For the near term, the State should be tracking and publicly reporting key data and holding districts accountable for addressing the pandemic’s negative impacts, including mitigating learning loss and ensuring a healthy return to school.
On an ongoing basis, the State should manage, expect, and hold districts accountable to improve achievement and reduce educational disparities, using data that it makes publicly available.
In light of these pressures, the State should consider significantly restraining the new funds it provides to wealthy districts.
State leaders should work with districts to set measurable goals to address the disruptions and improve learning outcomes going forward—a process of performance measurement and management that should be applied government-wide.
Key Data
$32.5 billion
— Total State school aid for the 2021-22 school year, which is a $2.9 billion increase over 2020-21.
$11.4 billion
— Extraordinary federal one-time education funding allocated to districts to be used over a four-year period.
$77.9 billion
— Total federal, State, and local resources for the 2021-22 school year, a 3.6 percent increase from the previous year.
$25,139
— Total spending per pupil in New York State in 2019, which was 91 percent higher than the national average.
At this time last year, New York State estimated that tax receipts would fall short of pre-pandemic estimates by $15 billion annually on average, totaling $60 billion over four years. Receipts, however, have been much stronger than expected. By April 2021, the State reduced its four-year tax receipt shortfall estimate by 80 percent, to $11.8 billion. Over the four-year period, the State also will receive at least $21.1 billion of targeted and general federal fiscal…
New York State has allocated an unprecedented $13 Billion increase in school aid, including $10 Billion in one-time federal education funds, to address pandemic-related learning loss and educational disparities. To ensure these resources are effective, the state must implement rigorous, data-driven accountability systems to track spending, measure educational outcomes, and hold districts responsible for results.
Recommendations related to Education Spending
The state should provide the public with the data used to track and manage federal and state education funds, hold districts accountable, and measure results.
The governor should utilize a robust performance management system to deliver education improvements and ensure accountability for results.
Key Data
$13 Billion
— Unprecedented increase in school aid included in the state budget for the school year.
$10 Billion
— One-time federal education funds allocated to address pandemic-related learning loss and educational disparities.
$3 Billion
— Increase in state-funded school aid provided to New York schools.
The City plans to transfer approximately 5,300 civilian school safety personnel and $306 million in intra-city revenue from the police department to the Department of Education by fiscal year 2023. This shift in funding and responsibility for school safety services is intended to move oversight to the education department, though implementation has faced delays.
Key Data
$306 million
— Intra-city revenue shifting from the NYPD to the Department of Education for school safety services in fiscal year 2023.
5,300
— Civilian personnel anticipated to shift from the NYPD to the Department of Education in fiscal year 2023.
$115 million
— Additional funds paid centrally for fringe benefits related to school safety.
New York City's Department of Education received over $7.6 billion in federal COVID-related aid, with a significant portion allocated to recurring initiatives like 3K expansion and school reopening. This reliance on temporary federal funding creates a potential fiscal cliff, with projected gaps ranging from $1.38 billion to $4.07 billion for future fiscal years.
Key Data
$7,629.2 Million
— Total new federal COVID-related aid for the Department of Education from fiscal years 2021 to 2025.
$1,382 to $4,070 Million
— The potential fiscal gap for new COVID-related federal education funding in fiscal year 2026.
$1,935.8 Million
— Total funding allocated for 3K expansion from fiscal years 2021 to 2025.
$4,759.6 Million
— Total funding allocated for school reopening initiatives from fiscal years 2021 to 2025.
New York City is set to receive nearly $7 billion in federal and state education aid, which should be used to address student learning loss and pandemic-related hardships. The City must prioritize efficient operations across all agencies, including education, to ensure long-term fiscal stability while utilizing these temporary resources.
Recommendations related to Education Spending
The City should not use federal funds to create new, or support or expand existing, education programs that will lack a substitute funding stream once the aid is depleted.
All agencies, including those providing critical education services, should participate in the Program to Eliminate the Gap (PEG) to identify opportunities to reduce costs and preserve or improve services.
The City should use temporary federal aid to return children to school, improve remote learning, and try to rectify the learning loss experienced by elementary and secondary students.
Key Data
$7 Billion
— The amount of federal and state education aid flowing to the City from the American Rescue Plan and the December 2020 stimulus bill.
$530 Million
— The increase in state Foundation Aid for the City in fiscal year 2022.
New York State's fiscal year 2022 budget includes a record increase in school aid of over $5 billion, yet it fails to prioritize funding for districts with the greatest needs. Instead of targeting resources effectively, the budget continues to provide significant financial support to wealthy districts without establishing a plan to measure the impact of this spending on student outcomes.
Recommendations related to Education Spending
The state should balance greater targeting of school aid to districts with the greatest needs with long-run fiscal sustainability.
Policymakers should stop sending billions of dollars to districts that already support a sound basic education with their own local resources and overly supplementing other wealthy districts.
Any education aid increase must be combined with a plan to measure impact to ensure New Yorkers know how spending improves learning and social outcomes.
Key Data
$5 billion
— The amount by which school aid will increase in the fiscal year 2022 budget, marking the largest increase in recent history.
New York should prioritize allocating state education aid to high-need districts rather than increasing funding for wealthy areas to achieve significant savings. Federal relief funds provide a temporary bridge that should be used to stabilize finances and restructure government operations rather than supporting new, ongoing programs.
Recommendations related to Education Spending
The state should prioritize focusing the state’s education aid on high-need districts instead of increasing funds to wealthy ones to provide significant savings.
Managing the City’s fiscal crisis well will be a critically important duty of the next Mayor and a primary determinant of how the city survives the current crisis, and ultimately thrives in the future. Managing NYC’s Fiscal Crisis: A CBC Mayoral Candidate Forum featured a 10-minute conversation with each candidate,…
New York State's public school districts spend significantly more per pupil than the national average, largely driven by high costs for employee health benefits. By aligning employee health insurance premium contributions with those of state employees, school districts could achieve significant annual savings of $846 million.
Recommendations related to Education Spending
New York’s 673 school districts should examine all areas of spending, including the high rate of spending on public school health benefits, to find efficiencies and contain costs in the face of stagnant or decreasing State aid and localities’ looming budget gaps.
School districts should align employee health insurance premium contributions with State employee benchmarks to achieve potential annual savings of $846 million.
Key Data
$24,040
— Amount spent per public elementary and secondary school pupil in New York State in fiscal year 2018, the highest level in the country.
$12,612
— National average amount spent per public elementary and secondary school pupil in fiscal year 2018.
$6,813
— Amount spent per pupil on employee benefits in New York, which is 116 percent higher than the national average.
116%
— Percentage by which New York's per-pupil spending on employee benefits exceeds the national average.
$7 billion
— Total annual amount New York’s school districts spend on health insurance for employees, their families, and retirees.
$846 million
— Estimated annual savings if all New York school district employees contributed the same share of health insurance premiums as State employees.
New York State faces significant long-term fiscal challenges and should prioritize structural spending reforms over tax increases to ensure financial stability. Specifically, the state should consider reducing aid to wealthy school districts and eliminating wasteful economic development spending before raising personal income taxes.
Recommendations related to Education Spending
The State should prioritize reducing aid to wealthy school districts as a less harmful measure than increasing personal income taxes.
Federal aid provided to New York State and City during the Great Recession included significant education funding, with $2.5 billion allocated to New York City and $1 billion to New York State. This historical context highlights the reliance on federal support to address budget gaps, though such aid is insufficient to solve long-term fiscal challenges.
Key Data
$2.5 billion
— Total federal aid provided to New York City for education between fiscal years 2009 and 2016.
$1 billion
— Federal education aid provided to New York State as part of the $4 billion in fiscal relief included in the most recent financial plan.
The state provides $1.6 billion in aid to school districts that already possess sufficient local resources to fund a sound, basic education, representing an inefficient allocation of funds. Curtailing this specific spending could help balance the state budget without negatively impacting essential services.
Recommendations related to Education Spending
The state should curtail the $1.6 billion in aid provided to school districts with more than enough local resources to fund a sound, basic education.
Key Data
$1.6 billion
— Aid provided to school districts with more than enough local resources to fund a sound, basic education.
New York State reduced school aid by $1.2 billion in fiscal year 2021, with cuts projected to grow to $2.3 billion by fiscal year 2024. To address fiscal stress, the state should prioritize reducing aid to wealthy districts that already have sufficient local resources to support a Sound Basic Education, rather than implementing broader, less targeted cuts.
Recommendations related to Education Spending
The State can reduce school aid by $800 million in the current year without undermining districts’ ability to fund a constitutionally guaranteed Sound Basic Education if the distribution of cuts is based on district need.
The State should reduce funds serving lower priority needs by funding to districts that spend well in excess of a Sound Basic Education and shifting the burden to districts that can afford to pay for additional services if they choose.
The State should eliminate $1.6 billion in aid to primarily wealthy districts that already have sufficient local resources to support a Sound Basic Education.
Key Data
$1.2 billion
— The amount by which the Enacted Budget reduced State school aid in fiscal year 2021.
$2.3 billion
— The amount by which State school aid is reduced in fiscal year 2024 compared to projections released in January.
$800 million
— The amount of local aid decrease that should be sufficient to address fiscal gaps, rather than the $8 billion presented in the Gap-Closing plan.
$1.6 billion
— The amount of aid to primarily wealthy districts that is recommended for elimination to support a Sound Basic Education.
New York State should prioritize directing school aid to districts that lack sufficient local resources to provide a sound basic education, rather than providing aid to wealthy districts that can already afford it. By consolidating various education aid streams into a need-based Foundation Aid formula, the state can reduce costs while ensuring all students receive the necessary funding.
Recommendations related to Education Spending
The State should focus on first ensuring that all districts have sufficient funds to provide a sound basic education (SBE).
The State should reduce funds to districts that already have sufficient local resources to meet the requirement for a sound basic education.
The State should incorporate funding from various education aids into a revised Foundation Aid formula to reduce costs and ensure all districts have the necessary revenues.
The State should revisit how it distributes its school aid dollars by accounting for student need, district wealth, and total district revenues.
Decreases in funding should first target districts that do not need State aid to fund a sound basic education.
Key Data
$1.6 billion
— Amount of State aid received by 129 school districts that already raised enough local revenue to fund a sound basic education.
$1.8 billion
— Amount of education aid proposed to be folded into Foundation Aid in the Executive Budget.
$237 million
— Total cost of library, textbook, and software aids that provide the same amount per pupil regardless of student need.
$223 million
— Total cost of High Tax aid, which provides more aid to wealthier districts.
$2 billion
— Amount by which State-funded school aid was lower than the Executive Budget proposal.
$8 billion
— Reduction in fiscal year 2021 local assistance spending to balance the state budget.
New York's Fiscal Year 2021 Executive Budget increases education aid by $826 million, which is $750 million more than necessary to provide a sound basic education statewide. The state should instead reform the Foundation Aid formula to better target funds based on student need and local revenue efforts, while controlling building and transportation costs.
Recommendations related to Education Spending
The State should fold those aids into the Foundation Aid formula and distribute them based on need.
The formula should be fixed to more accurately reflect student need and local revenue efforts, relax hold-harmless provisions, and eliminate automatic minimum increases.
The State should move forward with controlling building and transportation aid costs while ensuring that schools have what they need to provide a sound basic education.
This proposal should be improved by distributing the $1.8 billion according to a revised Foundation Aid formula that fully accounts for student need and all revenue sources.
Key Data
$750 million
— The amount by which the Executive Budget exceeds what is needed to fund a sound basic education statewide.
$72 billion
— The amount school districts in New York spent using local, State, and federal funds in school year 2018.
$13.6 billion
— The estimated amount spent in 2018 above what was necessary to fund a sound basic education as defined by the Foundation Aid Formula.
$30 million
— The funding gap that 13 districts will continue to face for a sound basic education under the proposed budget.
$1.8 billion
— The total value of ten different education aids being folded into Foundation Aid.
$5.1 billion
— The annual cost of building and transportation aids that the state should work to control.
New York City's Department of Education spending has been significantly driven by the rapid implementation and expansion of Universal Pre-Kindergarten and 3-K for All, which cost $1.0 billion in fiscal year 2019. Additionally, youth programs like the Comprehensive After School System and the Summer Youth Employment Program have seen substantial budget increases due to both expanded enrollment and rising per-student costs.
Key Data
$1.0 billion
— Cost of the Universal Pre-Kindergarten program in fiscal year 2019, representing 3.7 percent of the Department of Education's budget.
$14,100
— Approximate cost per student for the Universal Pre-Kindergarten program based on fiscal year 2019 enrollment.
$872 million
— Department of Youth and Community Development budget in fiscal year 2019, an increase from $404 million in fiscal year 2014.
$345 million
— Budget for the Comprehensive After School System in fiscal year 2019, which more than doubled from $152 million in fiscal year 2014.
$2,821
— Cost per student served by the Comprehensive After School System in fiscal year 2019, up from $2,123 in fiscal year 2014.
$163 million
— Spending on the Summer Youth Employment Program in fiscal year 2019, which more than tripled from $40 million in fiscal year 2014.
New York provides $1.6 billion in education aid to wealthy districts that already possess sufficient local resources to deliver a sound basic education. Targeting future aid increases to only those districts lacking necessary funding would provide $800 million in financial plan relief.
Recommendations related to Education Spending
Increases in State education aid should be targeted to those districts that lack the funding to provide an SBE.
The State should consider reducing aid to the highest wealth districts that receive more than is needed to provide an SBE.
Key Data
$1.6 billion
— Amount provided to wealthy districts that already have sufficient local resources to deliver a Sound Basic Education.
$1.1 billion
— School aid increase assumed in the current financial plan.
$300 million
— Amount that would be sufficient to ensure every school district has funding to fulfill its constitutional Sound Basic Education obligation.
$800 million
— Financial plan relief that would be provided by targeting education aid increases.
New York State has increased education aid by an average of 3.7 percent annually since 2011, which is double the rate of inflation. Despite this, wealthy districts with sufficient local resources received $1.6 billion in state school aid in the 2017-2018 school year, prompting calls to better target funding toward needy districts.
Recommendations related to Education Spending
Focus education aid on needy districts to fund fully SBE.
Key Data
3.7 percent
— Average annual increase in education aid between fiscal years 2011 and 2020, which is twice the rate of inflation.
$1.6 billion
— Amount of state school aid received by wealthy districts with sufficient local resources to provide a sound basic education in school year 2017-2018.
$800 million
— Amount by which education spending increased last year beyond what was needed for each district to fund a sound basic education.
New York State's education funding is currently inefficiently distributed, with the Foundation Aid formula relying on outdated data and "hold harmless" provisions that direct resources to wealthy districts rather than those in need. Despite aggregate spending exceeding the amount required to provide a sound basic education, the state must reform these formulas and redirect aid to ensure all districts have the necessary resources.
Recommendations related to Education Spending
The State should revamp the Foundation Aid formula and other education aid formulas to properly account for local wealth and actual local funding.
The State should eliminate hold-harmless provisions and guaranteed minimum funding increases to prevent aid from being locked into districts regardless of need.
The State should use the most up to date data available when calculating aid distributions.
Expense-based aids and other types of education aid, such as high tax aid, should be redirected towards those districts without the resources to provide a sound basic education.
Key Data
$13.6 billion
— The amount New York spent more than necessary to fund a sound basic education in school year 2017-2018.
$1.6 billion
— The amount of state aid received in school year 2017-2018 by 129 districts that already raise enough local revenue to fund a sound basic education.
$724 million
— The amount of state revenues received by the wealthiest decile of districts in school year 2017-2018.
$223 million
— The amount of High Tax Aid specifically targeting additional state aid to wealthy districts.
$500 million
— The total value of other aid streams that are not based on district need.
$72 billion
— The total amount spent by school districts in New York in school year 2017-2018 using local, state, and federal funding.
New York City spends $1.4 billion annually on pupil transportation, a cost that could increase if legislation codifying restrictive school bus contract provisions is enacted. The City needs to maintain flexibility in negotiating these contracts to ensure competitive procurement and protect taxpayer funds.
Recommendations related to Education Spending
The Governor should veto A7749/S6208, which would impose costly restrictions on school bus contracts in New York City by codifying contract components that the courts struck down.
The City must maintain flexibility to procure and negotiate pupil transportation contracts to secure savings for future taxpayers.
Key Data
$1.4 billion
— Annual cost of New York City pupil transportation.
Educating an average New York City public elementary school class costs approximately $561,246, with only 34 percent of that funding directly supporting classroom instruction. Costs vary by school level, with middle school classes averaging $590,351 and high school classes averaging $534,050, reflecting different allocations for instructional support and ancillary services.
Key Data
$561,246
— The cost to educate an average elementary school class in 2017.
$590,351
— The cost to educate an average middle school class.
$534,050
— The cost to educate an average high school class.
$24,402
— The average per student funding for elementary schools.
$23,614
— The average per student expenditure in middle schools.
$21,362
— The average per student expenditure in high schools.
New York City's budget grew by $19 billion between fiscal years 2014 and 2019, with education accounting for 41% of the $15 billion increase in agency spending. This growth in education funding was driven by investments in general education, special education, charter schools, and universal pre-kindergarten.
Key Data
$6.2 billion
— Total growth in education spending between fiscal years 2014 and 2019.
41%
— Portion of the $15 billion agency spending growth allocated to education.
$1.8 billion
— Growth in general education spending.
$1.4 billion
— Growth in special education spending.
$1.1 billion
— Growth in charter school spending.
$931 million
— Growth in universal pre-kindergarten spending.
New York City's reliance on new school construction to address overcrowding is expensive and slow, with the city spending billions on projects that are not always well-targeted. Implementing alternative strategies such as rezoning, repurposing existing space, and enforcing enrollment caps could reduce the need for new construction and save the city at least $2.4 billion in capital spending.
Recommendations related to Education Spending
New school construction should be used only when alternative strategies are inadequate.
A more flexible system of overlapping or grouped zones could more effectively balance enrollment between nearby crowded and non-crowded elementary school buildings.
This problem could be solved by capping enrollment at levels consistent with the DOE capacity standards, because adequate high school capacity exists citywide and students are selected for schools on a citywide basis.
The conversion of space from non-instructional to classroom use could add significant additional capacity.
Using middle school space has two impacts: it could accommodate 2,000 students at currently crowded middle school buildings through changes to middle school zoning or admissions and provide 7,500 elementary seats through new elementary or K-8 schools in the remaining underutilized middle school buildings.
Key Data
$9.1 billion
— Amount spent by the Department of Education to build new schools from 2005 through September 2018.
$2.4 billion
— Potential reduction in capital spending if alternative strategies are used instead of new construction.
$150 million
— Annual debt service savings for New York City and State from reduced capital spending.
95,984
— Total number of seats by which the city's 618 crowded school buildings fall short of requirements.
$121,270
— Average cost per new seat budgeted in the 2020-2024 capital plan.
618
— Number of school buildings in New York City that are considered crowded.
New York State spends more per pupil than any other state, yet the current Foundation Aid formula fails to equitably distribute resources, resulting in wealthy districts receiving excess aid while 29 districts lack the funds to provide a sound basic education. Reforming the funding formula to account for actual local wealth and eliminating "hold harmless" provisions would ensure resources are directed where they are most needed while improving fiscal sustainability.
Recommendations related to Education Spending
The state should significantly revamp the Foundation Aid formula and other education aid formulas to properly account for local wealth and actual local funding.
State leaders should eliminate hold-harmless provisions and minimal growth rates to prevent overfunding wealthy districts.
The state must use the most up to date data available when calculating aid to ensure resources are directed where they are needed most.
Policymakers should set aside more in reserves to increase the likelihood that state education funding can be sustained through the next recession.
The state should direct aid to where it is needed most to ensure every district has the resources needed to fund a sound basic education.
Key Data
$13 billion
— The amount New York State spends above what is necessary to fund a sound basic education.
$20 billion
— The total increase in school district revenues between school year 2006-2007 and 2016-2017.
$83 million
— The total amount of funding needed to bring the 29 districts currently lacking resources up to the level required for a sound basic education.
$1.9 billion
— The amount the wealthiest decile of districts are on track to spend above what is needed to fund a sound basic education in school year 2020.
$18.4 billion
— The portion of the $27.3 billion total school aid in 2019-2020 allocated to Foundation Aid.
$223 million
— The amount of additional State aid specifically targeted to wealthy districts through High Tax Aid.
New York State's education funding formula fails to ensure all districts can provide a sound basic education, with $62.6 billion required for 2020 while aggregate spending exceeds $70 billion. Despite significant funding growth, aid is poorly targeted, with wealthy districts receiving billions in formula-based aid while 29 districts remain underfunded by nearly $83 million.
Recommendations related to Education Spending
Poorly targeted forms of school aid, including High Tax, Library, Textbook, and Software Aids, should be folded into a reformed Foundation Aid formula that uses current data—including actual local funding and student enrollment.
The arbitrary floors, ceilings, phase-ins and add-ons to the Foundation Aid formula should be eliminated.
Key Data
$62.6 billion
— Cost for school districts in New York State to provide a sound basic education to all students in school year 2020.
$83 million
— Amount by which 29 school districts are collectively underfunded despite historic state aid increases.
$4.0 billion
— Amount of formula-based aid received by the four wealthiest deciles of school districts.
$223 million
— Amount of additional State aid specifically targeted to wealthy districts through High Tax Aid.
$240 million
— Total annual funding for Library, Textbook, and Software Aids that does not account for district wealth.
$961 million
— Increase in total formula-based school aid in the enacted Fiscal Year 2020 Budget.
New York State's fiscal year 2020 budget increases school aid by $1 billion, an amount that exceeds the funding required to provide a sound basic education by $840 million. This additional spending occurs despite concerns regarding the state's fiscal preparedness for a potential economic downturn.
Key Data
$1 billion
— The amount by which school aid will grow in the fiscal year 2020 budget.
$840 million
— The amount by which the school aid increase exceeds what is needed to ensure every district has resources for a sound basic education.
New York State's education funding is sufficient to provide a sound basic education statewide, as current revenues are projected to reach $72 billion against a $62.6 billion requirement. Rather than adding billions in new funding, the state should target a $164 million increase specifically to the 32 districts currently lacking the resources to meet basic educational standards.
Recommendations related to Education Spending
Direct a state aid increase of just $164 million to the 32 districts that have less than is needed to provide a sound basic education.
Target the distribution of aid to districts that need it, rather than ensuring that almost every district gets more no matter its circumstance.
Key Data
$62.6 billion
— The amount required to provide a sound basic education statewide according to state education aid formulas.
$72 billion
— The projected total of school districts’ revenues from federal, state, and local sources in 2020.
$164 million
— The total amount 32 districts would have less than is needed to provide a sound basic education.
$465 million
— The amount of state aid received by the 10% wealthiest districts as of 2018-2019, despite having sufficient resources.
$4 billion
— The amount advocates claim state aid is short, a figure based on a formula that ignores actual local funding.
41%
— The increase in total district funds between school years 2006-2007 and 2016-2017.
New York State could ensure all school districts provide a sound basic education by targeting $164 million in aid to the 32 underfunded districts, rather than increasing total aid by the nearly $1 billion proposed in the Executive Budget. Current education funding has grown 41 percent over the past decade, and many districts already possess sufficient resources to meet constitutional requirements without additional state aid.
Recommendations related to Education Spending
New York should ensure that all districts have the revenues to provide a sound basic education by directing $164 million to those districts that currently do not have sufficient combined State, local, and federal funds.
Policymakers should prioritize this $164 million allocation during budget negotiations to ensure all districts meet the sound basic education standard.
Any State aid provided above the $164 million required for a sound basic education should be targeted to specific educational needs and balanced with the State’s fiscal realities.
Key Data
$164 million
— The amount of additional state aid required to ensure all districts have the resources to provide a sound basic education.
$956 million
— The amount the Governor’s Executive Budget proposes to increase school aid.
$72.0 billion
— The estimated amount school districts will spend in 2020.
$62.6 billion
— The calculated amount needed in 2020 to provide a sound basic education for New York’s students.
41 percent
— The growth in education funding between school year 2006-2007 and school year 2016-2017.
$20 billion
— The increase in school district revenues between school year 2006-2007 and school year 2016-2017.
New York State faces a $2.3 billion revenue shortfall, necessitating immediate spending restraint to close budget gaps. To address this, the state should limit the growth of education aid by targeting funds only to districts that require additional resources to provide a sound basic education.
Recommendations related to Education Spending
The State should increase education aid only to those districts that need additional State resources to fund a sound basic education as defined by the Foundation Aid formula.
Key Data
$500 million
— Potential savings from limiting education aid growth to only those districts that need additional resources to fund a sound basic education.
$956 million
— The Governor's proposed increase in education aid.
New York State currently spends enough in the aggregate to provide all students with a sound basic education, yet the existing Foundation Aid formula fails to accurately target resources to the districts that need them most. Rather than broad funding increases, the state should focus on addressing the less than $200 million in specific district shortfalls while reforming the flawed aid distribution formula.
Recommendations related to Education Spending
The State should target any increase in aid to those districts that need it most.
Policymakers should reform the Foundation Aid formula, which is currently undermined by the use of inconsistent local share calculations, arbitrary adjustments, and outdated data.
The State should recognize that New York State already spends enough in the aggregate to provide all students with a sound basic education, meaning additional funding should be focused on specific shortfalls rather than broad increases.
Key Data
$69 billion
— Total amount spent on public education in New York State during the 2016-2017 school year.
$9 billion
— Amount by which New York education spending exceeds what is necessary to fund a sound basic education as defined by the Foundation Aid Formula.
$6.6 billion
— Amount of State aid provided to more than 600 districts that is greater than what is needed for them to fund a sound basic education.
$200 million
— The total amount of additional funding needed to bring underfunded districts to the level required for a sound basic education.
$20 billion
— The increase in total revenues to school districts between school year 2006-2007 and 2016-2017.
Watch the original segment here . Progressive, first, best are all terms have been used to describe New York’s economy. One non-partisan watchdog group took a look at how responsible the state has been with its money since Andrew Cuomo took office eight years ago. "See what has actually changed…
New York spends nearly double the national average per pupil on education, with spending growth outpacing the national average by 50 percent since 2011. Despite this high level of investment, graduation rates remain below the national average, while tuition at public colleges and universities has increased by approximately 40 percent since 2010.
Key Data
$22,366
— New York's spending per pupil in school year 2016, which is almost twice the national average of $11,762.
50 percent
— The rate at which New York's per pupil spending grew faster than the national average between school year 2011 and 2016.
$7,940
— The annual tuition and fees at four-year public colleges and universities in New York in academic year 2017-2018, compared to a national average of $9,970.
40 percent
— The increase in SUNY and CUNY tuition rates between school years 2010-2011 and 2018-2019.
New York City's fiscal year 2019 budget saw state education aid increase by 3.3%, though this amount fell $136 Million short of the city's financial projections. The adopted budget also included increased capital spending for initiatives such as school accessibility and 3-K seats, contributing to a broader trend of accelerating city-funded operating and capital expenditures.
Key Data
3.3%
— Increase in state education aid in fiscal year 2019.
$136 Million
— Amount by which state education aid fell short of the City’s financial plan projections.
The Absent Teacher Reserve (ATR) pool, consisting of teachers without permanent assignments, costs the City $136 million annually while providing little incentive for these educators to secure new positions. Reforming this system, such as by implementing a six-month time limit on placement, is necessary to reduce the financial burden on the education budget and improve staffing efficiency.
Recommendations related to Education Spending
The City should pursue reforms to the ATR, such as a six-month time limit, in upcoming labor negotiations with the UFT.
The City should use this round of negotiations to constrain, or preferably eliminate, the ATR.
Time in the ATR should be capped at six months.
Key Data
$136 million
— Cost of the ATR at the beginning of the 2018 school year.
$98,126
— Average salary of ATR teachers.
$50,000
— Lump sum payment offered to ATR teachers for resigning or retiring in 2018.
$1.8 million
— Cost of the 2014 separation incentive payout.
$8.5 million
— Cost of the 2018 separation incentive initiative.
The New York State Fiscal Year 2018-2019 Enacted Budget increased formula-based school aid by $859 million, with $618 million of that allocated to Foundation Aid for high-needs districts. While all districts received funding increases, the distribution varied significantly, ranging from a 1.9% minimum increase to double-digit percentage changes in specific districts.
Key Data
$859 million
— The New York State Fiscal Year 2018-2019 Enacted Budget increased formula-based school aid to local school districts by $859 million.
$618 million
— Foundation Aid, which is intended to support high-needs districts, increased $618 million over school year 2017-2018.
3.6%
— Foundation Aid increased 3.6% over school year 2017-2018.
1.9%
— The guaranteed minimum increase in school aid received by 148 districts was 1.9%.
11.1%
— The maximum increase in school aid was 11.1% in Uniondale in Nassau County.
23.1%
— The per-pupil change in school aid ranged to a 23.1% increase in Amagansett in Suffolk County.
New York City faces a $121 million shortfall in education funding for fiscal year 2019, despite receiving $10.55 billion in state formula-based education aid. This gap, combined with other state-mandated costs like the MTA Subway Action Plan and juvenile justice initiatives, requires the city to manage nearly $1 billion in additional expenditures.
Key Data
$10.55 billion
— State formula-based education aid allocated to New York City for fiscal year 2019.
$121 million
— Shortfall in education funding faced by the City because the Preliminary Budget forecast higher revenues.
$338 million
— Increase in state formula-based education aid to New York City from the prior year.
New York's Foundation Aid formula for education funding is currently distorted by outdated data and arbitrary constraints, resulting in excess aid for wealthy districts while poorer districts are shortchanged. Reforming this formula by updating demographic data and removing guaranteed increases would allow the state to better target resources toward students with the greatest needs.
Recommendations related to Education Spending
New York should streamline the local share calculation within the Foundation Aid formula to ensure aid is distributed equitably.
The state should repeal arbitrary floors and ceilings in the Foundation Aid formula to eliminate distortions in funding.
New York must update demographic data regularly to ensure the Foundation Aid formula reflects current student needs.
The state should repeal any guaranteed amounts or increases in the Foundation Aid formula to prevent excess aid from going to wealthy districts.
New York’s leaders should direct state aid where it is needed most by students rather than prioritizing political considerations.
Key Data
$26.4 billion
— Executive budget school aid proposal for the 2018-2019 school year.
$769 million
— Total increase in the executive budget school aid proposal.
$17.5 billion
— Total Foundation Aid for the 2018-2019 school year.
$2 billion
— Amount advocates are calling for as an increase in Foundation Aid.
$17.2 billion
— Foundation Aid base allocation that remains problematic.
New York's school aid is growing by $769 million to reach $26.4 billion, with a significant portion of this increase directed toward affluent districts rather than those in need. To address this, the state should reform the Foundation Aid formula to better target resources and reprogram expense-based aid to ensure all districts can provide a sound basic education.
Recommendations related to Education Spending
The Enacted Budget should reform the Foundation Aid formula to direct aid where it is needed most.
The State should reprogram expense-based aid into the Foundation Aid formula to ensure all districts have sufficient funds to provide a sound basic education.
Key Data
$769 million
— The amount by which school aid growth exceeds the cap on a school year basis.
3.0 percent
— The rate at which school aid is growing.
$26.4 billion
— The total amount of school aid after the 3.0 percent growth.
$338 million
— The portion of the school aid increase that is Foundation Aid.
44 percent
— The percentage of the school aid increase that is Foundation Aid.
Making changes to Foundation Aid formula would better help school districts most in need while avoiding providing unnecessary amounts of funding to the wealthiest districts. CBC's David Friedfel explains. Watch the original segment here .
Gov. Andrew Cuomo this week gave Republican lawmakers in the state Senate a choice: Back his proposed tax and fee increases or face potential cuts to schools and health care. Watch the original segment here .
New York State's proposed fiscal year 2018-2019 budget increases school aid by $769 million to $26.4 billion, exceeding the state's established school aid cap for the first time. While the proposal directs more funding to high-need districts, it fails to account for enrollment changes and continues to distribute aid to wealthy districts, necessitating a comprehensive reform of the Foundation Aid formula.
Recommendations related to Education Spending
The Governor should limit school aid growth and make reforms to the distribution of aid to better direct it to the neediest districts.
Instead of layering $338 million in aid on top of the existing distribution, the State should reform the formula to address the flaws that distort the total distribution of $17.5 billion in Foundation Aid.
Instead of limiting growth in the largest components of expense-based aids, the State should distribute those funds through a revised Foundation Aid formula to encourage districts to allocate funds to the highest priority needs.
The State should reform the Foundation Aid formula to ensure the highest needs districts are properly funded without unnecessarily sending aid to the wealthiest districts.
Key Data
$769 million
— Increase in New York State school aid in the fiscal year 2018-2019 Executive Budget.
$26.4 billion
— Total proposed school aid in the fiscal year 2018-2019 Executive Budget.
$17.5 billion
— Total proposed Foundation Aid allocation.
$119 million
— Potential state savings from imposing a growth limit on Building Aid in school year 2018-2019.
$132 million
— Potential state savings from imposing a growth limit on BOCES and Transportation Aids in school year 2018-2019.
New York City's capital investment in education has been substantial, with $53.3 billion in commitments between fiscal years 2003 and 2014, quadrupling the value of school facilities to $19.8 billion. However, the Department of Education funds only 65 percent of its reported maintenance needs, and 31 percent of school capital improvement projects are completed late.
Recommendations related to Education Spending
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets to prevent the state of good repair backlog from growing.
All city agencies, including the Department of Education, should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The City should adopt a “fix it first” strategy, in which state of good repair projects receive priority at each agency.
The administration should develop criteria for paying for some capital expenses from the operating budget to reduce the city’s high debt burden.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
Key Data
$53.3 billion
— Total capital spending by the Department of Education between fiscal years 2003 and 2014.
65 percent
— The share of reported maintenance needs funded by the Department of Education.
31 percent
— The share of school capital improvement projects that are completed late.
167
— The number of new schools and additions created since fiscal year 2003.
$19.8 billion
— The total value of school facilities as of fiscal year 2013.
New York State distributes $25 billion in annual school aid, yet certain categories like Library, Textbook, and Software Aids and High Tax Aid fail to prioritize the neediest districts, often directing more funds to wealthier areas. To ensure equitable resource allocation, these aid categories should be reformed or eliminated to better align with student needs and district wealth.
Recommendations related to Education Spending
Library, Textbook, and Software Aids should be redistributed through the Foundation Aid formula to better target high-need districts.
High Tax Aid should be eliminated because it currently drives funding to the wealthiest districts in the state.
The state must reform or eliminate education aid categories that do not properly account for district wealth and student needs.
Key Data
$25 billion
— Total school aid sent to local school districts by New York State during the 2017-2018 school year.
$17.2 billion
— The largest share of state education funding, distributed as Foundation Aid.
$243 million
— Total cost to state taxpayers for Library, Textbook, and Software Aids in the 2017-2018 school year.
$223 million
— Total funding provided to certain school districts through High Tax Aid.
$323
— Average High Tax Aid per pupil received by the wealthiest decile of school districts.
$100
— Average High Tax Aid per pupil received by the poorest decile of school districts.
New York's 2018 budget increased total school aid by $1 billion, yet the $17 billion Foundation Aid formula requires substantive changes to ensure limited resources are directed toward the highest needs districts. Additionally, the state faces rising costs for the Excelsior Scholarship program, which is estimated to grow from $71 million in fiscal year 2018 to $133 million in fiscal year 2019.
Recommendations related to Education Spending
Governor Cuomo should propose substantive changes to the $17 billion Foundation Aid formula to direct limited resources to the highest needs districts.
Key Data
$71 million
— Estimated cost of the Excelsior Scholarship program in fiscal year 2018.
$133 million
— Estimated cost of the Excelsior Scholarship program in fiscal year 2019.
$1 billion
— Total increase in school aid included in the 2018 Budget.
4.2 percent
— Percentage increase in total school aid in the 2018 Budget.
$17 billion
— Total value of the Foundation Aid formula.
We know that New York State leads the country in school spending per pupil. But how do those numbers break down when it comes to federal, state, and local spending? Most of the money comes from local governments through property taxes, which is how wealthier school districts are able to…
Today’s data point is $66 billion – the amount New York’s school districts received in revenue during the 2015-2016 school year. The state's 674 districts collect an average of $23,635 per student - however, 15 districts surpass this amount, collecting $40,000 per student, while 11 districts fall short, collecting only…
New York spends $21,206 per pupil on education, significantly higher than the national average of $11,392, with funding disparities driven by local property tax wealth. To address these inequities, the state should adjust its funding formulas to better account for district wealth and reallocate resources from affluent to disadvantaged districts.
Recommendations related to Education Spending
The State should properly account for district wealth and reallocate state resources from high-wealth to low-wealth districts.
Key Data
$21,206
— New York's per pupil education spending as of the 2014-2015 school year.
$11,392
— The national average per pupil education spending as of the 2014-2015 school year.
$24,845
— Average school district revenue per pupil in the 2015-2016 school year.
$13,168
— Average revenue per pupil derived from local governments in the 2015-2016 school year.
$16,167
— State aid per pupil provided to school districts in the lowest wealth decile.
$4,457
— State aid per pupil provided to school districts in the highest wealth decile.
New York City's $15.5 billion school capital plan faces criticism for inefficient allocation, as significant funds are directed toward districts with declining enrollment while overcrowded areas remain underserved. Improving the school planning process requires better utilization of existing space and prioritizing new construction in districts with the highest student needs.
Recommendations related to Education Spending
The city should maximize use of existing capacity by matching student enrollment to space across districts' buildings.
The city should target new capacity to areas with the highest need rather than constructing new capacity where it is less needed.
Significant reductions in crowding could be achieved by shifting students to different schools or moving schools to different buildings.
The city should alter school zone boundaries to save unnecessary capital expenditure.
The city should prioritize new school sites in already-crowded areas where finding space may be most difficult.
Key Data
$15.5 billion
— Total value of the School Construction Authority's amended five-year capital plan for fiscal years 2015 to 2019.
104,717
— Number of students over capacity in 785 overcrowded public school buildings.
$251 million
— Cost to fund more than 2,500 new seats in District 13, where enrollment is projected to drop by 44 percent.
46,000
— Number of seats of extra capacity available citywide.
$5.4 billion
— Amount allocated for state of good repair projects within the five-year capital plan.
$5.9 billion
— Amount allocated for system expansion within the five-year capital plan.
The 2017-2018 New York State budget increased school aid by $1.1 billion to a total of $25.8 billion, yet failed to reform the Foundation Aid formula, thereby perpetuating inequities by directing funds to wealthy districts rather than those with the greatest need. Implementing comprehensive formula reforms could have saved taxpayers $118 million while redirecting $1.9 billion to low-wealth, high-need districts.
Recommendations related to Education Spending
The state should reform the Foundation Aid formula to ensure that, regardless of a district’s wealth, students receive the resources necessary to achieve a sound basic education.
The state should implement comprehensive modifications to the funding formula to adequately fund education in all districts without excessive state spending.
The state should eliminate wasteful minimum increases for all school districts that exacerbate existing inequities.
The state should direct funding toward low-wealth, high-need districts rather than providing aid to wealthy districts with declining enrollments.
Key Data
$25.8 billion
— Total school aid authorized in the Enacted State Budget for Fiscal Year 2017-2018.
$1.1 billion
— The increase in school aid over the previous year.
$130 million
— The total amount of 'Additional Increases' provided to 507 of 674 school districts.
$118 million
— The total amount state taxpayers could have saved had the recommended funding reforms been adopted.
$1.9 billion
— The additional funding that could have been directed to low-wealth, high-need districts under the recommended reforms.
The FY2018 New York State budget increases education aid by 4.4 percent to $25.8 billion, surpassing the statutory growth cap of 3.9 percent. This spending plan fails to implement necessary reforms, continuing to direct billions to wealthy districts while leaving high-need, low-wealth districts underfunded.
Recommendations related to Education Spending
New York State should reform education funding to stop increasing aid to wealthy districts and instead address the underfunding of highest-need, lowest-wealth districts.
Key Data
$25.8 billion
— Total amount allocated for Education Aid in the FY2018 budget.
4.4 percent
— Growth rate of Education Aid in the FY2018 budget.
3.9 percent
— Statutory cap for Education Aid growth.
New York's current school aid distribution formula relies on outdated data and arbitrary adjustments that misallocate resources, sending excessive funds to wealthy districts while shortchanging those with greater needs. Reforming the formula to use a uniform local tax factor and updated poverty measures would allow the state to better target aid to support a sound basic education for all students with only a modest increase in total funding.
Recommendations related to Education Spending
A single method should be used that applies a uniform local tax factor and adjusts only for one other factor – the local Medicaid financing burden.
Hold harmless provisions, phase-in percentages, caps, and other adjustments in the current formula should be eliminated.
Increasing the weighting for poverty from 0.65 to 0.75 in the calculation of the PNI incorporated in the formula would more appropriately distribute Foundation Aid.
The current system can and should be improved in order to promote the wisest use of tax dollars by local school boards and administrators; this means promoting use of evidence-based strategies and requiring quantifiable results.
The Foundation Aid formula should be revised to better target school aid to support a “sound basic education” in all districts.
Key Data
$3.8 billion
— The amount of additional annual state funding advocates are calling for to increase the Foundation Aid program.
$569 million
— The required increase in annual state funding to support a sound basic education in all school districts under the proposed reformed formula.
$2.7 billion
— The amount of funding that would be redirected to needy districts under the proposed reformed formula.
$22,556
— New York's statewide average per pupil spending, which is the highest in the nation.
$6,340
— The foundation amount per pupil for the 2016-2017 school year.
$16.5 billion
— The total amount of Foundation Aid in the 2016-2017 school year.
New York State's current education funding distribution is flawed, as it provides resources to all districts regardless of need rather than focusing on those that require the most support. By reforming the Foundation Aid formula to redirect $2.7 billion to needy districts, the state could meet its constitutional obligations with only $569 million in additional funding rather than the billions requested by advocates.
Recommendations related to Education Spending
The state should fix the Foundation Aid formula to ensure resources are directed to the neediest districts.
Policymakers should redirect $2.7 billion to needy districts to address the flaws in the current distribution.
The state must return Foundation Aid to its intended purpose of directing aid to the neediest districts.
Key Data
$4.3 billion
— Additional funding requested by advocates to increase education spending next year.
$2.1 billion
— Additional funding proposed by the Board of Regents.
$1 billion
— Additional funding budgeted by Governor Andrew M. Cuomo.
$24 billion
— Existing annual aid provided to local school districts by the state.
$569 million
— Additional funding needed if the state fixes the Foundation Aid formula.
$2.7 billion
— Amount of funding that should be redirected to needy districts under a reformed formula.
On February 22, 2017, New York State Budget Director Robert Mujica presented highlights from the New York State Executive Budget for Fiscal Year 2018 to the Citizens Budget Commission.
New York's proposed executive budget for school aid fails to address systemic inequities in the Foundation Aid formula, instead cementing a system that directs resources to wealthy districts rather than those with the greatest need. By freezing aid distributions after minor adjustments, the proposal misses the opportunity to reform the flawed calculation method that currently ignores changes in district wealth, student needs, and enrollment.
Recommendations related to Education Spending
The Foundation Aid Formula requires substantial reforms to alleviate current inequities.
The state must fix problematic features of the formula to ensure scarce state dollars are directed to the districts that need them to provide a sound basic education.
The state should adjust for year-to-year changes in district wealth, student need, and enrollment rather than freezing aid distributions.
Key Data
$1.1 billion
— The increase in school aid proposed in the New York State Executive Budget.
$4.3 billion
— The amount certain advocates claim local districts are owed in Foundation Aid.
$569 million
— The additional funding required to fully fund all districts under Foundation Aid if problematic formula features were changed.
$16.5 billion
— The total amount of Foundation Aid, representing more than two-thirds of all school aid.
The Fiscal Year 2018 Executive Budget proposal includes various education-related investments, such as $35 million for after-school programs in high-needs areas and $5.3 million for early college high schools. Questions remain regarding the total amount of education aid, the implementation of necessary reforms to Foundation Aid, and the reauthorization of the rational funding plan for CUNY and SUNY tuition.
Recommendations related to Education Spending
The state should clarify how much will be added to education aid and include necessary reforms to Foundation Aid.
The budget should include reauthorization of the rational funding plan which permitted annual increases in tuition for CUNY and SUNY.
Key Data
$35 Million
— Expand After School Education in High Needs Areas
$5.3 Million
— Early College High Schools
$5 Million
— Expand Pre-K
$2 Million
— Cover cost of AP exams
$2 Million
— Master Teachers in Computer Science
$0.3 Million
— Empire State Excellence in Teaching Award
TWC News The Board of Regents is calling for a $1.2 billion increase in school funding next year, including nearly $1.5 billion for foundation aid. However, he Citizens Budget Commission says there is a much cheaper way to help low-income students.
This document presents a comparative analysis of current and proposed Foundation Aid allocations for New York State school districts, highlighting significant funding shifts across various regions. The data illustrates the specific financial impact of the proposed formula on individual districts, ranging from substantial increases in aid for some to significant reductions for others.
Key Data
$7,127,295,629
— Current Foundation Aid for the New York City school district.
$495,297,048
— Current Foundation Aid for the Buffalo school district.
$153,016,402
— The increase in Foundation Aid for the Brentwood school district under the proposed formula.
($26,823,215)
— The decrease in Foundation Aid for the Arlington school district under the proposed formula.
$50,444,000
— The increase in Foundation Aid for the Newburgh school district under the proposed formula.
The Teachers' Retirement System's Tax Deferred Annuity plan guarantees a 7 percent investment return, a costly feature that requires taxpayer subsidies to cover the gap between guaranteed and market rates. This arrangement creates a significant financial burden and poses risks to the pension system's viability, necessitating reforms to align benefits with market conditions.
Recommendations related to Education Spending
The most direct way to make the change would be to eliminate the TDA and transfer its assets and participants to OLR’s plan.
A more gradual change would be to require only newly hired teachers to use the OLR plan, but to reform the TDA plan serving current teachers and retirees.
The fixed income option should be converted to choices comparable to those offered in the OLR plan – a government bond fund and a corporate bond fund with returns based on prevailing interest rates.
If the city’s elected leaders and taxpayers want to provide teachers with a more secure investment option, they should consider the approach used by the federal government.
Key Data
$1.2 billion
— The taxpayer subsidy for the Teachers' Retirement System's Tax Deferred Annuity plan in fiscal year 2015.
$238 million
— The taxpayer subsidy for the Teachers' Retirement System's Tax Deferred Annuity plan in fiscal year 2007.
36 percent
— The portion of the total taxpayer contribution to the Teachers' Retirement System QPP that the 2015 taxpayer subsidy represented.
$18.7 billion
— The amount of money in the fixed fund in 2015.
$7.4 billion
— The amount of money in the fixed fund in 2007.
7 percent
— The guaranteed investment return rate for the Tax Deferred Annuity plan for most participants.
New York State's school aid distribution for the 2016-2017 academic year is visualized across 674 individual school districts. This interactive resource allows for the comparison of state funding allocations per pupil across various categories.
The Department of Education accounts for half of the city's planned $5.6 billion increase in agency spending, driven largely by programmatic initiatives like Universal Pre-K and increased compensation. While the department's total headcount is set to rise, the increase in city funds is primarily attributed to higher staff compensation rather than a significant expansion of city-funded positions.
Key Data
$2.8 billion
— The Department of Education's planned increase in agency expenditures between fiscal years 2014 and 2020.
$863 million
— The annual cost of the Universal Pre-K programmatic initiative.
8,210
— The projected increase in the Department of Education's total headcount between fiscal years 2014 and 2020.
1,215
— The decline in the Department of Education's City-funded headcount between fiscal years 2014 and 2020.
30 percent
— The increase in City funds allocated to the Department of Education.
New York State's fiscal year 2017 budget increased school aid by 6.1 percent, yet the distribution of these funds disproportionately benefits affluent districts rather than those with the greatest needs. Policymakers failed to address structural issues like "hold harmless" provisions and inefficient reimbursement formulas that continue to misdirect education funding.
Recommendations related to Education Spending
The state should address long-standing problems with the distribution of school aid, such as hold harmless provisions.
The state should reform reimbursements for spending that misdirect aid.
Key Data
6.1 percent
— Increase in annual school aid in the New York State Enacted Budget for Fiscal Year 2017.
$1.4 billion
— Actual growth in school aid, exceeding the $900 million increase that would have occurred under the statutory growth cap.
$434 million
— Funding allocated to the elimination of the Gap Elimination Adjustment.
10.4 percent
— Increase in school aid per pupil for the most affluent 10 percent of districts.
7.3 percent
— Increase in school aid per pupil for the neediest districts.
$690
— Statewide average increase in school aid per student.
New York State's budget increases education spending by 6.5 percent to $24.8 billion, a figure that exceeds the state's spending cap by nearly 70 percent. Much of this additional funding is directed toward moderate and wealthy school districts through the restoration of money previously lost to the Gap Elimination Adjustment.
Recommendations related to Education Spending
The state should have pursued extending rational funding plans for SUNY and CUNY to help secure the state's financial future.
Key Data
6.5 percent
— The rate at which state education spending will grow under the adopted budget.
$24.8 billion
— The total amount of state education spending in the adopted budget.
70 percent
— The amount by which state education spending exceeds the established spending cap.
New York State's SUNY 2020 and CUNY 2020 program has successfully provided tuition predictability and consistent state financial support, with annual contributions of $1 billion to SUNY and $1.2 billion to CUNY. Extending this program for another five years is essential to avoid irrational tuition fluctuations and maintain the state's competitive tuition rates, which are significantly lower than the national average.
Recommendations related to Education Spending
The final budget should include the extension of the SUNY 2020 and CUNY 2020 Program for an additional five years.
New York State should extend the SUNY 2020 and CUNY 2020 Program to ensure tuition predictability and maintain the state's requirement to provide consistent public support.
Key Data
$1 billion
— Annual state financial support provided to SUNY.
$1.2 billion
— Annual state financial support provided to CUNY senior colleges.
$7,640
— Average in-state tuition and fees for public four-year undergraduate universities in New York.
$9,410
— National average in-state tuition and fees for public four-year undergraduate universities.
70%
— Portion of CUNY students who do not pay tuition due to federal Pell grants and the state Tuition Assistance Program.
Governor Cuomo's 2016-17 budget proposal includes a 4.3% increase in total school aid to $24.2 billion, yet only 27% of this growth is directed through Foundation Aid, the primary mechanism for supporting neediest districts. Instead, significant portions of the funding are allocated through expense-based reimbursements that favor wealthier districts and fail to address structural issues like hold harmless provisions.
Recommendations related to Education Spending
The State should address fundamental issues with aid formulas, such as hold harmless provisions, during budget negotiations.
The State should reform generous reimbursements for school transportation and construction expenses that misdirect aid.
The State should direct more resources through Foundation Aid, which is the best mechanism for targeting aid to the neediest districts.
Key Data
4.3%
— The proposed increase in total school aid for the 2016-17 school year.
$24.2 Billion
— The total school aid proposed for the 2016-17 school year.
27%
— The portion of the proposed school aid increase distributed through Foundation Aid.
$400 Million
— The amount of the school aid increase flowing through expense-based reimbursement formulas like Building Aid and Transportation Aid.
$100 Million
— The amount of new Community Schools Aid allocated to high-need districts.
$715
— The average per-student increase in school aid for the poorest 10 percent of New York school districts.
This school year New York State will spend $23.5 billion on aid to school districts, accounting for 25 percent of the state-funded operating budget. The State’s role in K-12 public education is critical to offsetting disparities in local wealth and student need, yet numerous problems remain in the state school…
New York's public education system spends an average of $19,818 per student, which is 85 percent higher than the national average, yet student achievement rankings remain relatively low. Rapidly rising fringe benefit costs, which grew at an annual rate of 9.4 percent between 2003 and 2013, are increasingly consuming school budgets and forcing cuts to other instructional areas.
Recommendations related to Education Spending
The State Legislature should ensure that employee benefits are part of the conversation as it debates its role in public education.
Policymakers must curb high growth rates of employee benefits to prevent them from consuming an ever greater share of school budgets.
Key Data
$19,818
— Average total spending per student in New York in 2013.
85 percent
— Amount by which New York's per-student spending exceeded the national average of $10,700.
22 percent
— Share of 2013 budgets New York schools allocated to instructional staff fringe benefits, compared to a 15 percent national average.
$4,412
— Amount spent per student on fringe benefits in the average New York school district in 2013, nearly triple the national average of $1,609.
9.4 percent
— Annual growth rate of instructional employee benefits from 2003 to 2013, compared to 3.4 percent for teacher salaries.
5.0 percent
— Decline in non-compensation spending for instruction, including classroom supplies and materials, from 2012 to 2013.
New York State's recent legislative package includes $250 million in additional aid to nonpublic schools and a new property tax relief rebate program costing $1.3 billion annually, despite existing budget gaps. While school aid has grown at an average annual rate of 4.4 percent over the past four years, the state must now enact cost-saving measures to offset these new expenditures.
Recommendations related to Education Spending
Lawmakers must now be prepared to enact cost-saving measures to produce the surpluses they just spent.
The new property tax rebate is flawed because its benefits are skewed to favor wealthier rather than poorer households because the amounts are linked to the School Tax Relief (STAR) program.
The state should re-evaluate the $250 million increase in aid to nonpublic schools, as the aid is linked to recurring expenses and calls for additional funds will likely continue.
Key Data
$1.3 billion
— Annual cost of the new property tax relief rebate program when fully implemented.
$250 million
— Increase in aid to nonpublic schools.
4.4 percent
— Average annual growth rate of school aid over the past four years.
$25 million
— Funding provided to the Yonkers school district.
$410 million
— Annual cost of the Family Tax Relief Rebate.
$783 million
— Annual cost of the Property Tax Freeze Rebate.
The New York State end-of-session agreement includes a $250 million increase in aid to nonpublic schools, a move that raises fiscal concerns regarding the reliance on projected surpluses for funding. While the agreement avoids certain tax breaks for private school benefactors, the overall addition of large spending commitments remains fiscally troubling.
Key Data
$250 million
— The amount by which aid to nonpublic schools will increase under the new state agreement.
New York's public education system spends an average of $19,818 per student, which is 85 percent higher than the national average, largely driven by instructional staff fringe benefits that cost nearly triple the national norm. This disparity is exacerbated by state laws that limit the ability of school districts to control employee benefit costs, leading to significant budget allocations for retirement and health insurance.
Key Data
$19,818
— Average total spending per student on public education in New York in 2013, which was 85 percent higher than the national average.
$4,412
— Average cost per student for instructional staff fringe benefits in New York school districts in 2013, nearly triple the national average of $1,609.
22 percent
— Portion of 2013 school budgets allocated to instructional staff fringe benefits in New York, compared to a national average of 15 percent.
9.4 percent
— Average annual growth rate of instructional employee benefits from 2003 to 2013, significantly outpacing the 3.4 percent growth in teacher salaries.
$8,359
— Average spending per student on instructional salaries and wages in New York schools, nearly double the national average of $4,305.
$5,342
— Average fringe benefit costs per pupil in New York City, the highest among the state's regions.
The fiscal year 2016 state budget increased annual formula-based school aid by $1.3 billion, yet this funding was not targeted to the neediest districts and instead perpetuated spending disparities. The state legislature failed to address fundamental issues with aid distribution, such as 'hold harmless' provisions and reimbursement formulas that misdirect resources toward wealthier districts.
Recommendations related to Education Spending
The state should address long-standing problems with the distribution of school aid, such as 'hold harmless' provisions.
The state should reform generous reimbursements for school transportation and construction expenses that misdirect aid.
The state should address fundamental issues with the aid formulas in the coming year.
Key Data
6.0 percent
— increase in annual formula-based aid to school districts
$1.3 billion
— actual growth in school aid, exceeding the statutory growth cap
$603 million
— restoration to the Gap Elimination Adjustment that steers funding to wealthier districts
$75 million
— grants to persistently failing schools included in the adopted budget
$30 million
— bullet aid to be allocated by resolutions approved in the Senate and the Assembly
$8 million
— line item grants for specific school districts
New York's school aid spending is set to reach $23.1 billion, exceeding pre-recession peaks, yet the current distribution formulas remain flawed and require an overhaul based on student need and district ability to pay. Additionally, reforms to the $3.4 billion School Tax Relief program and the rejection of a proposed private education tax credit are necessary to ensure fiscal responsibility and equitable resource allocation.
Recommendations related to Education Spending
The state should improve the School Tax Relief program by providing a tax credit for new homeowners so that taxpayers bear the full burden of their school taxes directly and school districts gradually lose the state subsidy.
New York should implement regional rate setting for preschool special education teacher services to eliminate irrational variation and help contain costs.
Policymakers must overhaul flawed school aid formulas to ensure funds are distributed according to student need and district ability to pay, rather than continuing to increase spending without a distribution plan.
The state should reject the proposed Education Tax Credit because it creates an enhanced, potentially costly subsidy for private education.
Key Data
$3.4 billion
— The annual cost of the School Tax Relief (STAR) program.
$500,000
— The income threshold above which New York City taxpayers are disqualified from the STAR exemption.
4.8 percent
— The increase in school aid proposed in the Executive Budget, which exceeds the 1.7 percent cap.
1.7 percent
— The cap on school aid increases that the proposed 4.8 percent increase exceeds.
$23.1 billion
— The total amount school aid would reach if the proposed increases are adopted.
$1.5 billion
— The amount by which the proposed school aid increase exceeds the pre-recession peak.
The fiscal year 2016 Executive Budget proposes a 4.8 percent increase in school aid, totaling $1.1 billion, despite the state already having the highest average per-student spending in the nation at over $20,000. The budget also includes necessary reforms to the School Tax Relief (STAR) program and preschool special education rate-setting, though it lacks a rational distribution plan for the proposed school aid increase.
Recommendations related to Education Spending
The increase in school aid should be targeted to the neediest districts, and the allocation details should be available to the public for review and analysis well in advance of budget adoption.
New York State should overhaul flawed school aid formulas so that school aid is distributed according to student need and district ability to pay.
New York State should implement regional rate setting for preschool special education providers to eliminate irrational variation and help contain costs for local governments.
The State should modify the School Tax Relief (STAR) program to provide a tax credit for new homeowners, ensuring taxpayers bear the full burden of their school taxes directly and school districts gradually lose the state subsidy.
Key Data
$3.4 billion
— Annual cost of the School Tax Relief (STAR) program, which is New York’s largest property tax relief program.
4.8 percent
— Proposed increase in school aid in the fiscal year 2016 Executive Budget, which exceeds the cap on annual growth in personal income.
$1.1 billion
— Total proposed school aid increase in the fiscal year 2016 Executive Budget.
$400
— Average additional school aid per student resulting from the proposed $1.1 billion increase.
$20,000
— New York’s average spending per student, which is the highest in the nation.
New York State's budget projections show significant gaps rather than surpluses, driven largely by growth in school aid, Medicaid, debt service, and pension contributions. These four areas, which account for 50% of the state budget, are projected to grow at rates that threaten the state's 2% spending growth target.
Key Data
7.5%
— The projected increase for school aid in the next fiscal year, which exceeds the statutory cap.
50%
— The portion of the state budget comprised of school aid, Medicaid, debt service, and pension contributions.
The proposed $2 billion Smart Schools Bond Act is an ill-conceived use of borrowed funds that lacks a statewide needs assessment and fails to demonstrate that technology investments yield significant educational benefits. New York should reject this referendum and instead reserve its limited debt capacity for higher-priority infrastructure needs.
Recommendations related to Education Spending
New York State is approaching its statutory debt cap (4 percent of personal income) and should prioritize its capital spending.
Any list of capital needs to be funded with state-supported debt should be established through the new statewide capital planning process.
Before $2 billion is committed, a statewide needs assessment should be conducted.
The borrowing capacity remaining under the debt cap should be reserved for these high-priority investments, not used to fund yet unjustified one-time technology purchases.
New Yorkers should reject the Smart Schools Bond Act.
Key Data
$2 billion
— The total amount of general obligation bonds authorized by the Smart Schools Bond Act.
4 percent
— The statutory debt cap limit of personal income for state-supported debt.
$174 billion
— The total capital needs identified in the state's 10-Year Capital Plan.
$89 billion
— The projected state and local infrastructure funding shortfall over the next 20 years.
$19,552
— The average per-pupil spending in New York during the 2012 school year.
84 percent
— The amount by which New York's average per-pupil spending exceeds the national average.
The fiscal year 2015 budget includes approximately $500 million in new state aid to expand prekindergarten and after-school programs, while also incorporating labor settlements with the United Federation of Teachers. This budget reflects a shift in priorities under new leadership, increasing reserves and support for public entities like the Housing Authority and Health and Hospitals Corporation.
Key Data
$500 million
— New State education aid allocated in the fiscal year 2015 budget to expand prekindergarten and after school programs.
New York maintained its position as the top per-pupil spender on public elementary-secondary education in 2012, with costs averaging $19,552 per student. This spending level was 84 percent higher than the national average, driven largely by significantly higher costs for teacher compensation and fringe benefits.
Key Data
$19,552
— New York's per-pupil spending on public elementary-secondary education in 2012.
$10,608
— National average per-pupil spending on public elementary-secondary education in 2012.
84%
— The percentage by which New York's average overall per-pupil spending exceeded the national average.
$8,313
— Average instructional salaries and wages per pupil in New York.
$4,233
— Average instructional employee fringe benefits per pupil in New York.
6.8%
— The rate at which the cost of fringe benefits for teachers rose from 2011 to 2012.
New York State faces significant budget gaps that require concrete savings plans, as school aid and Medicaid continue to grow at rates exceeding the state's 2 percent spending cap. To maintain fiscal discipline, the state must reform overly rich reimbursement formulas for school transportation and capital construction while better targeting resources to the neediest districts.
Recommendations related to Education Spending
Baseline reductions in school aid could be achieved if resources were better targeted to the neediest districts and overly rich reimbursement formulas for functions such as transportation and capital construction were reformed.
To make cuts in school aid, either the “tails” or prior year commitments will have to be broken, or the new school aid agreed to in the current year budget will need to be below the school aid cap.
Key Data
42 percent
— Portion of the state operating fund budget comprised by school aid and Medicaid.
5.3 percent
— School aid increase provided for school year 2015.
7.5 percent
— Projected rise in school aid in fiscal year 2016.
The fiscal year 2015 New York State budget increased school aid by $1.1 billion, or 5.4%, surpassing the statutory cap linked to personal income growth. This total increase, which reaches $1.6 billion when including unallocated funds, relies on Gap Elimination Adjustment restorations and categorical grants that fail to target the neediest schools.
Key Data
$1.1 Billion
— Increase in school aid for school year 2014-15.
5.4%
— Percentage increase in school aid for school year 2014-15.
$21.8 Billion
— Total school aid for school year 2014-15.
$429 Million
— Unallocated aid in the enacted budget.
$340 Million
— Funding allocated for the expansion of universal prekindergarten.
$1.6 Billion
— Total increase in school aid including unallocated funds.
Preschool special education costs in New York have nearly doubled to $1.4 billion over a decade, driven by a 27 percent increase in children served and a 91 percent rise in service intensity. To address issues like fraud and irrational rate setting, the state should implement reforms that establish regional rates, allow New York City to negotiate provider rates, and limit reimbursement to hours actually provided.
Recommendations related to Education Spending
The state should establish regional SEIT rates to minimize irrational variances for providers that have similar underlying costs.
New York City should be authorized to select and negotiate rates with its SEIT providers to help drive down costs.
Reimbursement for SEIT services should be limited to the number of hours actually provided and not permitted for sessions that are missed.
The full proposal made by the Governor regarding preschool special education reforms should be included in the adopted budget.
Key Data
83,038
— Number of children receiving preschool special education services in 2011-12, representing a 27 percent increase from 2001-02.
$1.4 billion
— Total cost of preschool special education services in 2011-12, up from $732 million in 2001-02.
293 percent
— Statewide increase in costs for special education itinerant teacher (SEIT) services from 2000-01 to 2011-12.
435 percent
— Increase in SEIT costs in New York City from 2000-01 to 2011-12.
91 percent
— Increase in service intensity for children receiving preschool special education, measured by the number receiving more than one type of service.
$25 to $63
— Hourly rate range for SEIT services in New York City in 2012.
New York State's proposed $807 million increase in education aid for the 2014-15 school year is poorly targeted, as current distribution formulas favor wealthier districts and rely on outdated enrollment data rather than student need. To ensure equitable funding, the state should abandon the Gap Elimination Adjustment restoration approach and instead funnel operating aid through up-to-date foundation formulas that prioritize districts with the neediest students.
Recommendations related to Education Spending
State leaders should adjust the distribution to give more to the districts with the neediest students and least ability to pay on their own.
The GEA restoration approach should be abandoned.
Operating aid should be funneled through up-to-date foundation formulas.
The formulas that distribute expense-based aid should be refined to reduce costs and to be better targeted.
Key Data
$21.1 billion
— Education aid for school year 2013-14.
$21.9 billion
— Proposed education aid for school year 2014-15.
$807 million
— Proposed increase in education aid from school year 2013-14.
3.8 percent
— Percentage increase in education aid from school year 2013-14 to 2014-15.
$2.6 billion
— Amount of the Gap Elimination Adjustment (GEA) in school year 2010-11.
3.9 percent
— Proposed year-to-year growth in expense-based aid.
Governor Cuomo's 2014-15 Executive Budget proposes increasing total education aid by $807 million to $21.9 billion, with a significant portion allocated through formula aid and the reduction of the Gap Elimination Adjustment. To maintain the Governor's goal of limiting state operating fund growth to 2 percent, school districts will need to exercise continued fiscal discipline.
Recommendations related to Education Spending
School districts will require continued fiscal discipline if the adopted budget is to limit growth in state operating funds to 2 percent as the Governor intends.
Key Data
$21.9 billion
— Proposed total education aid for school year 2014-15.
$807 million
— Total increase in education aid from school year 2013-14.
$100 million
— Funding allocated for universal prekindergarten expansion.
$25 million
— Funding for performance grants for teachers and school districts.
$603 million
— Aid increase distributed according to established formulas.
$21.3 billion
— Total allocated school aid in school year 2014-15.
New York's preschool special education system faces significant fiscal challenges, with expenditures growing 73 percent to $1.37 billion between 2001 and 2012 despite a decline in overall public school enrollment. Legislative action is required to improve oversight, mandate audits, and address conflicts of interest to ensure cost-effective service delivery.
Recommendations related to Education Spending
The state should approve A7302-A/S5568-A to improve the oversight of preschool special education program providers.
Legislation should require that every provider be audited at least once by the State Comptroller by March 31, 2018.
The state should require 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) consent in writing whenever the same program provider conducts the evaluation and also provides services.
The State Education Department should be tasked to complete a study of alternative reimbursement methodologies and monitoring protocols to identify further reforms.
Key Data
$1.37 billion
— Expenditures for preschool special education services in 2011-12.
73 percent
— Growth in expenditures for preschool special education services from 2001-02 to 2011-12.
91 percent
— Increase in the number of preschoolers receiving more than one authorized service over the decade ending in 2011-12.
27 percent
— Increase in the number of children receiving special education services from 63,509 to 83,038 between 2001-02 and 2011-12.
$12 to $38 per hour
— Rate for an hour of SEIT in the Western New York region in 2012.
$23 to $58 per hour
— Rate for an hour of SEIT in the Long Island region in 2012.
This presentation was given during CBC's Conference on The Most Important Economic and Fiscal Decisions Facing the Next Mayor , which took place on December 6, 2013.. CBC provides a framework for curbing expenditures effectively and provides 8 options for savings: Implementing health insurance premium-sharing; Consolidating union welfare funds;…
New York's universal prekindergarten program is currently underfunded and far from universal, with per-pupil spending lagging behind national norms and neighboring states. Expanding the program to all three- and four-year-olds would require significant new investment, potentially costing up to $4 billion annually, which would place a substantial fiscal burden on already highly taxed residents.
Recommendations related to Education Spending
New York's leaders should review the history of universal prekindergarten efforts and take stock of key fiscal realities before raising public expectations.
Policymakers should avoid underfunding services for students who could benefit most for the sake of achieving a superficial definition of universality.
The state should prioritize investments in intensive, high-quality programs for disadvantaged children, as evidence shows these deliver the best long-term returns.
State leaders must acknowledge that making the program both richly-resourced and fully universal would impose a significant new fiscal burden on already highly taxed New Yorkers.
Key Data
$3,707
— New York's per pupil spending on prekindergarten in 2012.
$1.4 Billion
— Estimated annual added cost of providing Abbott-quality prekindergarten programs for all four-year-olds in New York.
$3.0 Billion
— Estimated annual added cost of providing Abbott-quality prekindergarten programs for all three- and four-year-olds in New York.
$80.60
— New York's local tax burden per $1,000 of personal income, which is 72 percent higher than the national average.
103,573
— Number of children served by New York's universal prekindergarten program in the 2011-12 school year.
$220 Million
— Amount of grant funding New York City received to serve 57,759 pupils in the 2012-13 school year.
New York's preschool special education system has seen a 73 percent increase in expenditures over a decade, driven by rising enrollment and service intensity despite a decline in overall public school enrollment. To address concerns regarding fraud, conflicts of interest, and inefficient rate-setting, legislative action is required to mandate provider audits, ensure qualified leadership, and study alternative reimbursement methodologies.
Recommendations related to Education Spending
The Governor should approve 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.
The state should require 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) consent in writing whenever the same program provider conducts the evaluation and provides services.
The State Education Department should be tasked to complete a study of alternative reimbursement methodologies and monitoring protocols to identify further reforms.
Key Data
73 percent
— Expenditures for preschool special education services grew by this amount from 2001-02 to 2011-12.
$1.37 billion
— Total expenditures for preschool special education services in the 2011-12 school year.
91 percent
— Increase in service intensity for children receiving preschool special education services from 2001-02 to 2011-12.
27 percent
— Increase in the number of children receiving preschool special education services from 2001-02 to 2011-12.
$12 to $38 per hour
— 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
— Range of rates for an hour of Special Education Itinerant Teacher (SEIT) services in Long Island in 2012.
New York leads the nation in public school spending, with per pupil costs reaching $19,076 in fiscal year 2011, a figure 81% higher than the national average. This high spending is primarily driven by instructional salaries and fringe benefits, which account for 64% of total per pupil expenditures in the state.
Key Data
$19,076
— FY 2011 New York per pupil spending.
81%
— Amount by which New York per pupil spending exceeded the U.S. average.
$8,196
— Average per pupil spending on instructional salaries in New York.
$3,962
— Average per pupil spending on fringe benefits for instructional employees in New York.
$12,158
— Total per pupil spending on instructional salaries and fringe benefits in New York.
$19,770
— Average per pupil spending in New York City.
New York State's 2013-14 budget increased school aid by $1.1 billion, exceeding the established cap tied to personal income growth. This funding was distributed inefficiently, providing increases to wealthy districts rather than focusing resources on the highest-need communities.
Recommendations related to Education Spending
New York State should ensure school aid allocations are more disciplined in future budgets to improve the state's fiscal footing.
The state should prioritize highly targeted, substantial increases for less affluent districts to meet pressing needs without increasing out-year budget gaps.
Key Data
$20.8 billion
— Formula-based aid allocated for the 2013-14 school year.
$1.1 billion
— Total increase in school aid for the 2013-14 school year.
$7,760
— Average formula aid per pupil for the 2013-14 school year.
$14,511
— Formula aid per student for the highest need-lowest wealth districts.
New York State's 2014 budget agreement allocates $20.8 billion in formula-based school aid, representing a $937 million increase over the previous year. This distribution includes controversial additions like $69 million for High Tax Aid, which benefits wealthier districts, and a minimum $100,000 increase for all districts regardless of need.
Key Data
$20.8 billion
— Formula-based school aid allocated for school year 2014.
$937 million
— Increase in formula-based school aid over school year 2013.
$223 million
— Final amount of High Tax Aid after a 9% increase.
$11 million
— Specific appropriations added for over 100 school districts outside of formula-based aid.
$100,000
— Minimum increase for all districts in the Gap Elimination Adjustment formulas regardless of wealth or need.
New York's reliance on competitive grants to distribute school aid has proven ineffective, with few districts applying or receiving funds, and the current expansion proposal is unlikely to yield better results. Instead, the state should prioritize distributing school aid through formulas that account for student need and district wealth, or fund specific reform initiatives categorically for the districts that need them most.
Recommendations related to Education Spending
The state should prioritize distributing school aid through formulas that measure student need and district ability to pay rather than competitive grants.
If specific programs are deemed key to improving the education system, they should be funded categorically and systematically in the districts and for the students that most need them.
Key Data
$21.1 billion
— The proposed school aid package for the fiscal year 2013-14.
$175 million
— The total cost of proposed competitive grant programs.
$17 million
— The total amount of grant funding awarded from a $50 million pool to date.
$10.2 million
— The total amount of performance improvement grants awarded to qualifying districts.
$888 million
— The increase in the school aid package from the prior year.
Governor Cuomo's fiscal year 2013-14 Executive Budget proposes increasing total school aid by $889 million, bringing the total to $21.1 billion. This plan includes $611 million in formula and categorical aid, alongside $203 million for a fiscal stabilization fund and $75 million for new competitive grant programs.
Key Data
$889 million
— The total increase in school aid proposed in the fiscal year 2013-14 Executive Budget.
$21.1 billion
— The total amount of school aid proposed for school year 2013-14.
$611 million
— The increase in formula and categorical aid compliant with the state aid growth cap.
$203 million
— The amount allocated for a fiscal stabilization fund in the proposed budget.
$75 million
— The amount allocated for new competitive grant programs.
New York's current school aid formulas are flawed and inequitable, relying on outdated "hold harmless" provisions and overly generous expense-based aid that diverts resources from actual educational needs. Furthermore, the state imposes 227 special education mandates beyond federal requirements, resulting in a staffing intensity that is nearly double the national average.
Recommendations related to Education Spending
State leaders should redesign the school aid formulas instead of putting more money in the hands of school districts through the same seriously flawed methods.
The Governor and Legislature should act this year to reform state aid formulas if the New NY Education Reform Commission is silent on the question.
Governor Cuomo should press for adoption of the pending special education mandate relief proposals in the fiscal year 2013-14 budget.
Key Data
$20.1 billion
— The amount of education aid in the state budget for the current year.
$1.5 billion
— The amount education aid is projected to grow over the next two years based on an agreement adopted with the last state budget.
227
— The number of mandates New York imposes on special education beyond those required by federal law.
5.5
— The student-to-staff ratio in New York special education, compared to the U.S. average of 10.1.
10.1
— The U.S. average student-to-staff ratio for special education.
New York's pupil transportation spending is high and growing rapidly, with school districts spending $1,100 per pupil on average in 2010, which is 140% above the national average. The current state aid formulas are poorly designed, often benefiting wealthy districts and failing to incentivize cost containment, leading to calls for simpler, fairer formulas and lower overall reimbursement rates.
Recommendations related to Education Spending
New York should simplify its current formulas to improve targeting.
One formula should be applied to all districts, based upon or equal to the foundation aid ratio.
The rates could be brought down by a targeted number of percentage points to create a greater incentive to reduce costs.
Transportation aid for the wealthiest districts, which averages about $200 per pupil, could also be entirely eliminated.
Districts should find ways to save, such as by using buses more efficiently, sharing routes, and coordinating special education transportation.
Key Data
$1,100
— average per pupil spending on transportation in New York in 2010
140%
— amount by which New York's per pupil transportation spending exceeded the U.S. average of $459
$2.97 billion
— annual cost of pupil transportation in New York State
5.7%
— portion of total school spending accounted for by pupil transportation
$270 million
— estimated state funds that could be made available for redirection to foundation aid if the average reimbursement rate were reduced from 54% to 45%
$200
— average per pupil transportation aid received by the wealthiest districts
New York's public education system spends $18,825 per student annually, significantly higher than the national average of $10,292. High transportation costs, which average $1,100 per pupil, are driven by inefficient aid formulas that reimburse some districts up to 90% of their expenses, reducing the incentive for cost containment.
Key Data
$18,825
— Per pupil spending in New York per year.
$10,292
— Per pupil spending nationally.
$1,100
— Average per pupil transportation spending in New York in 2010.
$1,033
— Transportation spending per pupil in New York City.
$1,141
— Average transportation spending per pupil in the rest of New York state.
$908
— Transportation spending per pupil in New Jersey.
New York's public education system spends $18,825 per pupil annually—the second highest in the nation—yet student achievement remains below average, with graduation rates ranking 39th. To improve outcomes and efficiency, the state should reform aid formulas, cap employer health insurance contributions, and eliminate excessive special education mandates.
Recommendations related to Education Spending
State leaders should overhaul state aid formulas so that aid is based on local ability to pay, student need, and regional cost differences.
The legislature and the Governor should work together to establish a statutory cap on school district employer contributions for health insurance at 85 percent for single coverage and 75 percent for family coverage.
The legislature could begin reducing costs by passing the pending bill that authorizes multiple mandate relief measures already approved by the State Education Department.
School leaders and legislators should focus on retargeting the dollars already committed to public education rather than pursuing even more funding.
School districts should reallocate responsibility for employee and retiree health insurance premium costs to align with state employee arrangements.
Key Data
$18,825
— Annual per pupil spending in New York, which is 83 percent above the U.S. average.
20 percent
— Percentage of per pupil expenditures going for employee fringe benefits in New York, compared to a U.S. average of 13 percent.
$4.7 billion
— Amount spent annually by school districts in New York State on health insurance for employees and retirees.
$500 million
— Potential annual savings if school districts changed their health insurance premium-sharing arrangements to match those of the State of New York.
$11.4 billion
— Statewide special education spending in the decade ending in 2010, representing an 88 percent increase.
227
— Number of special education mandates imposed by New York State beyond those required by federal law.
WWNY TV 7 The nonprofit public spending watchdog group is offering New Yorkers a new tool to see how their school district's per-pupil spending measures up.
New York State spends significantly more per student than the national average, with wide variations in spending patterns and instructional costs across different school districts. To address budget pressures, districts should reexamine support service costs and fringe benefits, particularly by increasing employee contributions to health insurance premiums.
Recommendations related to Education Spending
Districts that spend above statewide and regional norms on support services should consider how and why districts nearby are able to spend less.
Fringe benefits, especially health insurance, should be reexamined.
One way to bring down costs is to share a greater percentage of premium costs with employees.
Key Data
$18,825
— Average annual spending per student in New York compared to $10,292 nationally.
$3,688
— Per student cost for fringe benefits in New York, which is nearly three times the U.S. average of $1,330.
20%
— Percentage of spending on fringe benefits in New York, compared to 13% nationally.
72%
— Average percentage of total spending allocated to instructional services across the state.
$20,706
— Average spending per pupil in the Long Island region.
$20,276
— Average spending per pupil in New York City.
New York State's special education spending has grown at an average rate of 7.5% annually over the last decade, placing significant fiscal pressure on local school districts already constrained by property tax caps. The proposed legislation A.10722A/S.7722A would exacerbate these financial burdens by requiring districts to fund private school tuition even when adequate public programs exist, prompting calls for a veto and a reduction in the state's 200 existing special education mandates.
Recommendations related to Education Spending
The Governor should veto A.10722A/S.7722A, which would allow for consideration of a child’s “home environment and family background” in special education placement determinations.
School districts need relief from the more than 200 special education mandates currently imposed by the state, rather than additional requirements that increase costs.
Key Data
7.5%
— Average annual growth rate of special education spending in New York State over the last decade.
200
— Number of special education mandates currently imposed by the state on school districts.
New York spends significantly more on public education than the national average, yet student performance remains average, highlighting the need for more efficient spending rather than simply increasing funding. The state should overhaul aid formulas, increase employee contributions to health insurance premiums, and reduce burdensome special education mandates to improve outcomes and fiscal sustainability.
Recommendations related to Education Spending
State school aid formulas should be overhauled to ensure that aid is distributed based on local ability to pay, student need, and regional cost differences.
School districts should bargain more successfully with teachers’ unions to give employees a greater stake in cost containment through the sharing of health insurance premium costs.
Special education spending should be lowered by eliminating overly burdensome procedural and staffing mandates.
Current categories of aid that are reimbursement driven should be stripped of hold harmless provisions and other loopholes that allow districts to pick the most favorable of different formulas to calculate their aid.
For districts whose fortunes would change dramatically as a result of redesigned aid formulas, a 3-5 year phase-in schedule could be developed.
Key Data
$17,746
— New York's annual per pupil spending on public education.
$10,590
— The U.S. average annual per pupil spending on public education.
$4.7 billion
— Amount spent by New York school districts on health insurance for employees and retirees in 2009.
$500 million
— Potential annual savings if school districts matched state employee health insurance premium sharing arrangements.
$11.4 billion
— Total state-wide special education spending.
$40,000
— Instructional spending per pupil on students classified for special education services in some districts.
New York State distributes $20.4 billion in school aid with significant variations in per-student funding that often stem from outdated "hold harmless" provisions rather than current student needs or local wealth. Consolidating small school districts could generate significant savings, yet current aid formulas fail to adjust for changing circumstances like declining enrollment, leading to systemic inefficiencies.
Recommendations related to Education Spending
New York State should pursue the consolidation of school districts with enrollment below 900 to achieve economies of scale.
School districts with falling enrollment should close schools to reduce expenses, as current State aid formulas often fail to reflect actual enrollment counts.
Key Data
$20.4 billion
— Amount of aid school districts in New York are expecting to receive in school year 2012-13.
40 percent
— Average portion of total school budgets comprised of state aid.
7 to 20 percent
— Potential savings from consolidating school districts with enrollment below 900.
$5,589
— Aid per student received by one of the Mid-Hudson region districts with a need-resource index value of 0.5.
$10,672
— Aid per student received by the other Mid-Hudson region district with a need-resource index value of 0.5.
554
— Number of pupils enrollment dropped in Albion since 2006.
New York school districts face significant fiscal strain due to state-imposed mandates, particularly regarding special education, which has seen instructional spending grow at an average rate of 7.5 percent annually. Rather than providing relief, recent legislative actions have further burdened districts by requiring them to cover private-school tuition costs under certain parental contentions.
Recommendations related to Education Spending
The Legislature should pass the bill to repeal unnecessary mandates on school districts (A10290/S6688) to help alleviate fiscal pressure.
State leaders should curb the extremely high and growing cost of special education by reducing state-imposed mandates that exceed federal requirements.
The state should enact reforms in contracting to help seriously strapped school-district budgets.
Legislators should avoid imposing more mandates that put school districts on the hook for additional costs, such as private-school tuition.
Key Data
7.5 percent
— Instructional spending for special education in New York has grown over the past decade at an average rate of 7.5 percent a year.
20 percent
— Instructional spending for special education has grown 20 percent faster than for general education.
200
— There are more than 200 state-imposed special-education mandates that exceed those required by federal law.
New York State imposes 227 distinct special education mandates that exceed federal requirements, creating unnecessary costs for school districts. Legislative leaders should pass the proposed mandate relief package to streamline administrative requirements, establish rational payment rates, and improve the efficiency of special education service delivery.
Recommendations related to Education Spending
Legislative leaders should bring the special education mandate relief bills to a successful vote to eliminate costly mandates that do not improve the quality of services offered by school districts.
The legislature should amend laws to align the membership of teams that make decisions about special education services at the preschool and school-age levels with federal requirements.
The legislature should establish more rational regional payment rates for certain special education service providers.
The legislature should shorten the timeline for due process hearings to prevent drawn-out and costly proceedings.
The legislature should require mediation before disputes proceed to impartial hearings to reduce administrative and paperwork requirements.
Key Data
227
— distinct special education mandates imposed by New York State above and beyond those required by federal law
New York's proposed $805 million increase in school aid is poorly targeted, with competitive grants and categorical aid formulas often favoring wealthier districts over those with the greatest need. To ensure equitable support, the state should prioritize distributing funds through the foundation aid formula while capping categorical aid and reevaluating existing aid formulas to better align with student needs.
Recommendations related to Education Spending
To help high need districts recover from two years of cuts, the proposed $805 million increase should be highly targeted to the neediest districts by relying heavily on distribution through the foundation aid formula.
Categorical aid should be frozen or subject to a tight growth cap to ensure funds are distributed based on need.
The competitive grant program should be much smaller, if not eliminated.
A full-on effort to retool the school aid formulas should be launched to ensure every dollar counts toward boosting student achievement.
Key Data
$805 million
— Governor’s proposed state aid increase for school districts.
$290 million
— Proposed increase in foundation aid.
$265 million
— Proposed addition in categorical aids.
$250 million
— Proposed amount for new competitive performance grants.
$2.2 billion
— Total amount school aid was cut from its $21.7 billion peak in school year 2009-10.
17.6 percent
— Statewide average reduction in foundation aid per student from school year 2009-10 to 2011-12.
New York State disbursed $26.1 billion in state-funded education aid in fiscal year 2010, representing nearly one-third of total state spending. This analysis of regional fiscal distribution highlights that while New York City received 39 percent of public-school aid, the allocation of funds varies significantly across the state's regions.
Key Data
$26.1 billion
— Total state-funded education disbursements in fiscal year 2010, accounting for nearly one-third of total state spending.
39 percent
— Share of public-school aid received by New York City in fiscal year 2010.
34 percent
— Share of School Tax Relief (STAR) funding received by New York City in fiscal year 2010.
79 percent
— Share of municipal and community-college aid received by New York City in fiscal year 2010.
New York State imposes over 200 special education mandates beyond federal requirements, leading to unsustainable spending growth that necessitates reform. Proposed changes would allow school districts greater flexibility to meet student needs and control costs by reducing excessive bureaucratic requirements and blanket policies.
Recommendations related to Education Spending
The Board of Regents should approve the proposed changes in November and resist the temptation to weaken them or postpone them once again.
The State Legislature should pass the necessary changes to State law to support mandate relief.
The State should adopt the federal standard for initial student evaluations by repealing the State law that mandates specific, rigid evaluation components.
Multidisciplinary school committees should be allowed to determine what evaluations to administer based on each student's individual needs.
Key Data
$10,874
— Average cost of instruction per general education student in New York State during the 2008-09 school year.
$26,551
— Average cost of instruction per special education student in New York State during the 2008-09 school year.
7.5 percent
— Average annual rate of increase for special education instructional spending over the decade preceding 2011.
5.5
— Student-to-staff ratio in New York's special education system.
10.1
— U.S. average student-to-staff ratio for special education.
New York State's special education system is one of the most intensively staffed in the nation, with instructional costs for special education students reaching $26,551 per pupil in 2008-09, which is 2.4 times higher than general education costs. To address unsustainable spending growth and limited revenue, the state should adopt proposed mandate relief measures that align local procedures with federal requirements and reduce administrative overhead.
Recommendations related to Education Spending
The Board of Regents should approve the third round of special education mandate relief proposals as is.
The Legislature should pass the necessary statutory changes to align state law with federal requirements.
The Board of Regents should resist the temptation to weaken the proposals or postpone them once again.
The state should repeal the requirement that Boards of Education have plans and policies for appropriate declassification of students with disabilities.
The state should repeal the requirement that the Commissioner of Education approve early intervention services by preschool providers to reduce administrative overhead.
Key Data
$10,874
— Instructional spending per pupil for general education in the 2008-09 school year.
$26,551
— Instructional spending per pupil for special education in the 2008-09 school year.
7.5 percent
— Average annual rate of instructional spending growth for special education over the past decade.
5.5
— Number of students per staff person in New York's special education system.
10.1
— U.S. average number of students per staff person in special education.
$1.3 billion
— Amount by which state aid for school year 2011-12 was cut from the previous year's level.
Legislation allowing school districts to borrow funds to cover pension contributions should be vetoed because it undermines the property tax cap and unfairly shifts financial burdens to future students. Instead, the state should pursue sustainable, long-term reforms to pension benefits to address rising costs.
Recommendations related to Education Spending
The Governor should veto A6309/S4067, which would allow school districts to borrow funds to cover pension contributions.
The state should implement real and lasting changes to pension benefits to ensure long-term sustainability rather than allowing school districts to borrow.
Key Data
$211 million
— Employer contributions to the New York State Teachers’ Retirement System in 2000.
$925 million
— Employer contributions to the New York State Teachers’ Retirement System in 2010.
16 percent
— Average annual growth rate of employer contributions to the New York State Teachers’ Retirement System from 2000 to 2010.
125 percent
— Amount of required 2011 pension contributions that the bill would allow school districts to borrow.
15 years
— Repayment period for the proposed borrowing by school districts.
Legislation allowing school districts to borrow funds to cover pension contributions should be vetoed to prevent the undermining of the property tax cap and the shifting of financial burdens onto future students and taxpayers. Instead of delaying costs, the state should implement sustainable, long-term reforms to pension benefits.
Recommendations related to Education Spending
The Governor should veto A6309/S4067, which would allow school districts to borrow funds to cover pension contributions.
The state should implement real and lasting changes to pension benefits to ensure they are sustainable over the long run.
Key Data
$211 million
— Employer contributions to the New York State Teachers’ Retirement System in 2000.
$925 million
— Employer contributions to the New York State Teachers’ Retirement System in 2010.
16 percent
— Average annual growth rate of employer contributions to the New York State Teachers’ Retirement System from 2000 to 2010.
125 percent
— Amount of required 2011 pension contributions that the bill would allow school districts to borrow.
15 years
— Repayment period for the proposed school district borrowing.
Legislation allowing school districts to borrow to cover pension contributions threatens long-term fiscal health by deferring costs to future taxpayers and obscuring the actual expense of retiree benefits. Such borrowing practices undermine the integrity of the property tax cap and hinder necessary efforts toward comprehensive pension reform.
Recommendations related to Education Spending
School districts should avoid financing a portion of their required pension contributions by borrowing and paying it back over 15 years.
Legislators should reject measures that push the cost of current services to future years and taxpayers.
Policymakers should avoid legislation that masks the true cost of retiree benefits, thereby impeding any serious effort toward pension reform.
Legislators should uphold the purpose of the property tax cap by rejecting measures that contradict it.
Policymakers should prioritize sound public finance practices over shortsighted, counterproductive measures.
New York's public higher education system should be granted greater autonomy to set tuition rates and implement differential pricing to better reflect program costs and regional demand. To ensure continued access for low-income students, the state must reverse recent cuts to the Tuition Assistance Program and maintain robust financial aid support.
Recommendations related to Education Spending
SUNY and CUNY should be granted greater autonomy with respect to their tuition policies and control over their physical assets.
SUNY and CUNY should be allowed to set differential tuition among campuses and programs to recognize variation in costs and maximize revenue.
The impact of higher and differential tuition on affordability should be mitigated through financial aid.
State leaders should reverse the trend of reducing Tuition Assistance Program (TAP) funding to ensure a more rational system of funding public higher education.
Key Data
$5,790
— Average tuition and fees for resident undergraduate students charged by New York's four-year public colleges and universities in 2010-11.
$1,252
— Amount by which New York's in-state tuition and fees at community colleges in 2010-11 exceeded the national average.
$4,000
— Reduced amount of Tuition Assistance Program (TAP) funding for students in two-year colleges following recent budget enactments.
$40 Million
— Tuition revenue diverted by the legislature in the current budget cycle, refusing to appropriate it to the university system.
$12,870
— SUNY's out-of-state undergraduate tuition in 2009-10.
New York's public higher education system, including SUNY and CUNY, should be granted greater autonomy over tuition policies and asset management to move away from erratic, legislature-controlled pricing. Implementing differential tuition and reversing recent cuts to the Tuition Assistance Program would create a more rational, sustainable funding model for the state's public colleges.
Recommendations related to Education Spending
All public higher education institutions in New York should be given the same authority regarding tuition policies and control over physical assets as proposed for SUNY at Buffalo.
The state should allow universities to raise tuition without legislative approval to ensure more regular, modest, and predictable tuition hikes.
It is desirable to allow SUNY and CUNY to set differential tuition among campuses and programs to recognize variation in costs and maximize revenue.
The trend of reducing financial aid should be reversed, specifically by increasing the Tuition Assistance Program (TAP) to mitigate the impact of higher tuition on needy students.
Key Data
$40 million
— CUNY tuition revenue from a 5 percent increase that the Legislature refused to appropriate.
$5,790
— Average tuition and fees for resident undergraduate students at New York's four-year public colleges in 2010-11.
$7,605
— National average tuition and fees for resident undergraduate students in 2010-11.
$12,870
— SUNY's out-of-state undergraduate tuition in 2009-10.
$8,500
— Amount SUNY's out-of-state undergraduate tuition was less than the average at 29 comparable state universities.
$1,000
— Amount SUNY at Buffalo's average in-state tuition and fees were below the national average for public flagship schools.
New York's 2011 state budget reduced school aid to help close a $10 billion deficit, but the final distribution of funds disproportionately favored wealthier districts over those with the greatest need. Lawmakers should re-examine the state's school aid formulas to ensure future allocations are both sustainable and equitably distributed based on local district capacity.
Recommendations related to Education Spending
The State should reopen the basic formulas by which school aid is distributed to improve their targeting if it can no longer keep promises made in 2007.
Lawmakers should undertake a serious examination of how best to achieve sustainable and equitable allocations of school aid going forward.
Key Data
$1.5 billion
— The amount of school year to school year cuts proposed by the Governor.
$10 billion
— The size of the budget gap that necessitated school aid cuts.
$608 million
— The amount of federal aid not included in the enacted budget school aid totals for school year 2010-11.
6.3 percent
— The average cut to school aid if all districts spent their federal funds in school year 2010-11.
New York's proposed $1.7 billion reduction in school aid disproportionately impacts poorer districts due to flawed formulas that protect wealthier areas. By removing specific provisions that limit cuts for certain districts, the state could spare the neediest schools $750 million in budget pain and create a more equitable distribution of necessary spending reductions.
Recommendations related to Education Spending
The legislature should remove the provision for a maximum reduction limit from the formula by which the cuts are allocated.
The legislature should remove the provision for lowered reductions for certain “high tax” districts from the formula by which the cuts are allocated.
The legislature should focus on improving the distribution of aid cuts to make them more targeted and improve their progressivity.
The formula by which school aid reductions are made should be improved so that the burden is borne more squarely by those who can most easily absorb the cuts.
Key Data
$21.2 billion
— School aid is the State’s largest expenditure item, comprising fully $21.2 billion or one-quarter of the State operating budget.
$1.7 billion
— Governor Andrew Cuomo proposed reducing school aid by nearly $1.7 billion to $19.5 billion.
$750 million
— If the cuts were better calibrated by ability to pay, the neediest school districts could be spared $750 million in budget pain.
$5.5 million
— The wealthiest 10 percent of the districts have, on the average, a local tax base per pupil more than 10 times greater than the statewide median, or $5.5 million per pupil.
$30,192
— Estimated average per pupil expenditures in the top 10 percent of districts is $30,192.
$16,065
— Estimated average per pupil expenditures in the top 10 percent of districts is nearly twice the statewide median of $16,065.
School districts across New York State exhibit wide variations in employee health insurance contribution rates, with some districts requiring no contribution from employees while others mandate rates as high as 35%. These disparities in benefit structures significantly impact local education budgets and highlight the lack of standardized cost-sharing practices across the state's school systems.
Key Data
35.0%
— The employee contribution rate for health insurance premiums in the Clarkstown Central School District.
20.0%
— The employee contribution rate for health insurance premiums in the East Ramapo School District.
$987
— The flat dollar amount contribution for individual health insurance premiums in the Pleasantville School District.
0%
— The employee contribution rate for health insurance premiums in the West Park School District.
Rising municipal pension costs have forced significant budget cuts to city agencies serving children, including a reduction of over 9,600 teaching staff. To prevent further erosion of these essential services, the state must reform the pension system for future uniformed workers and increase cost-sharing for health insurance premiums.
Recommendations related to Education Spending
The Legislature must enact a new pension system for future uniformed workers that includes a minimum age for retirement.
Future uniformed workers should have their pension based on salaries without overtime and be obliged to contribute more during their working years.
Union leaders must agree to more cost-sharing for health insurance premiums.
Retirees should be paying for a share of their benefits similar to arrangements in the private and nonprofit sectors.
Key Data
9,600
— The proposed reduction in teaching staff in the Department of Education, representing an 8% decrease.
8%
— The percentage reduction in teaching staff in the Department of Education.
$6.6 billion
— Total pension contributions cost New York's taxpayers last year.
$1.2 billion
— Cost of retiree health insurance to New York taxpayers last year.
$4.9 billion
— Annual pension fund contributions in 2007.
$8.1 billion
— Projected annual pension fund contributions in fiscal year 2012.
New York's public university systems are currently constrained by legislative control over tuition, which leads to unpredictable, politically driven fee hikes rather than stable funding. Granting SUNY and CUNY autonomy to set their own tuition rates and implement differential pricing would allow for more predictable costs while maintaining necessary financial aid for low-income students.
Recommendations related to Education Spending
The Public Higher Education Empowerment and Innovation Act should be separate from budget negotiations and passed immediately.
The State should allow SUNY and CUNY to set their own tuition rates, eliminating the requirement that the Legislature appropriate the funds.
The State should allow SUNY and CUNY to set differential tuition among campuses and programs to recognize variation in costs and maximize revenue.
The State should maintain generous financial aid, such as TAP grants, to mitigate the impact of higher tuition on needy students.
Key Data
14 percent
— The increase in tuition for undergraduates at SUNY in 2009 to help close the budget gap.
15 percent
— The increase in tuition for undergraduates at CUNY in 2009 to help close the budget gap.
$5,761
— The average tuition and fees for resident undergraduate students charged by New York's four-year public colleges and universities in 2009-10.
18 percent
— The amount by which New York's average tuition and fees were below the national average of $7,020 in 2009-10.
$12,870
— The out-of-state undergraduate tuition in 2009-10, which was 40 percent less than that at 29 comparable state universities.
$500
— The proposed annual cap on tuition increases for SUNY and CUNY.
Between fiscal years 2002 and 2009, New York City directed 26 percent of its capital spending toward education, resulting in the construction of approximately 100 new schools and 95,800 new seats. While these investments tripled the value of school assets to $13.5 billion and reduced hazardous building violations, crowding persists in 38 percent of the city's high schools.
Key Data
26 percent
— Share of total capital spending concentrated in education between fiscal years 2002 and 2009.
$13.5 billion
— Value of school capital assets in fiscal year 2009, up from $4.2 billion in 2002.
95,800
— Estimated new school seats produced between fiscal years 2002 and 2009.
38 percent
— Percentage of high schools experiencing persistent crowding despite new construction.
163
— Backlog of hazardous building violations in 2009, down from 2,200 in 2002.
New York's public higher education system, which relies on erratic tuition increases linked to the state budget process, should transition to a more rational funding model by granting universities control over tuition rates and revenue. To maintain accessibility, these reforms must be paired with robust financial aid, specifically rejecting proposed cuts to the Tuition Assistance Program.
Recommendations related to Education Spending
The state should remove tuition revenue from the legislative appropriation process to allow SUNY and CUNY to directly control their own funds.
Authority to set tuition rates should be transferred from the Legislature to the colleges' presidents and boards of trustees to ensure more predictable pricing.
Future tuition increases should be subject to an annual cap of two-and-one-half times the five-year rolling average of the Higher Education Price Index to prevent erratic spikes.
SUNY and CUNY should be permitted to set differential tuition among campuses and programs to reflect varying operational costs and market demand.
The Legislature should reject proposed cuts in financial aid to ensure that higher tuition rates do not limit access for low-income students.
Key Data
$13.5 Billion
— Total annual funding for the SUNY and CUNY public higher education system.
$2.7 Billion
— Annual tuition revenue collected by CUNY and SUNY combined.
$5,761
— Average tuition and fees for resident undergraduate students at New York's four-year public colleges in 2009-10.
$7,020
— National average tuition and fees for resident undergraduate students at four-year public colleges in 2009-10.
$827 Million
— Estimated grants awarded to eligible undergraduates through the Tuition Assistance Program during the 2007-08 academic year.
$3,888
— Average in-state tuition and fees at New York's community colleges in 2009-10.
During the 2007-2008 school year, the wealthiest 10 percent of New York school districts spent $28,754 per pupil, which is nearly triple the national average. The state provided $3,809 per pupil in aid to these affluent districts, funds that could be better utilized elsewhere to address fiscal gaps.
Recommendations related to Education Spending
The state should cease providing aid to wealthy school districts, as that money could be saved or better spent elsewhere.
Key Data
$28,754
— Amount spent per pupil by the richest 10 percent of New York school districts during the 2007-2008 school year.
$3,809
— Amount of state aid provided per pupil to the wealthiest school districts.
New York City can avoid laying off thousands of employees, including teachers, by implementing efficiency measures such as requiring employee contributions to health insurance, standardizing workweeks, and reforming pension tiers. Additionally, the city could save $100 million annually by addressing the issue of teachers who are not assigned to classrooms.
Recommendations related to Education Spending
The city should stop paying teachers who do not teach, saving $100 million annually by addressing the status of roughly 2,000 teachers not assigned to a classroom.
The city should create a new pension tier for future workers to generate savings and avoid laying off 2,000 teachers.
The city should share costs for health insurance premiums with employees, retirees, and their dependents to save $1 billion and avoid layoffs.
The city should adopt a 40-hour workweek for civilian municipal employees, which would reduce the need for 8,500 positions.
The city should better manage overtime costs, which exceeded $1 billion last year, to preserve essential services.
Key Data
$100 million
— Annual cost to the city for paying roughly 2,000 teachers who are not assigned to a classroom.
2,000
— Number of teachers not assigned to a classroom who are currently being paid by the city.
1,000
— Number of teaching positions that could be saved by speeding up the review process for teachers in the Absent Teacher Reserve.
7,019
— Number of teachers facing potential layoffs due to state funding cuts in the preliminary budget.
New York's education system faces necessary budget cuts, but these reductions should be strategically targeted to protect the neediest districts rather than applied across the board. While the state has significantly increased per-pupil spending over the last decade, much of this funding has gone toward administrative costs and benefits rather than improving student performance, necessitating a shift toward wiser, more equitable investment.
Recommendations related to Education Spending
Harm to the neediest districts could be further minimized by even greater targeting of school aid reductions.
The limited available funding should be targeted to the neediest schools and pupils rather than distributed broadly.
The state should halve the $900 million in state aid currently provided to the wealthiest districts to restore funding for districts in the six poorest deciles.
Key Data
$1.1 billion
— The proposed absolute cut in the amount of school aid for fiscal year 2010-11.
$7.5 billion
— The estimated budget gap for the coming year.
$52 billion
— Total spending on education in New York State in fiscal year 2007-08.
$28,754
— The average per pupil expenditure in the wealthiest 10 percent of districts in 2006-07.
$16,463
— The average per pupil expenditure in the poorest 10 percent of districts in 2006-07.
$900 million
— The amount of state aid received by the 136 wealthiest districts in the state.
New York City faces a $4.1 billion budget gap, necessitating reforms to teacher compensation and employment policies to ensure taxpayer dollars are spent effectively. Proposed changes include ending indefinite pay for teachers not in classrooms, implementing merit-based pay, and eliminating seniority-based layoff rules that protect underperforming staff.
Recommendations related to Education Spending
The city should end compensation for teachers who aren't teaching, limiting pay for those in the "Absent Teacher Reserve" to a six-month period while they search for new employment.
The process for quick termination for unsatisfactory teachers must be greatly expedited, as current procedures keep underperforming staff on the payroll for an average of nearly three years.
The school system should use financial rewards to attract qualified teachers in hard-to-fill fields like special education, math, and science.
Merit pay should replace seniority rewards to better align compensation with performance, a change that would eventually save about $285 million a year.
The city must kill the "last in, first out" rule for layoffs, which forces the newest teachers to be fired first regardless of their performance or merit.
Key Data
$4.1 billion
— The size of the city's budget gap that underscores the need for effective spending.
$100 million
— The annual outlay on teachers who are not currently teaching.
1,400
— The number of teachers paid to be in the "Absent Teacher Reserve."
$74 million
— The annual cost of maintaining the "Absent Teacher Reserve."
640
— The number of teachers currently charged with poor performance or other infractions.
$285 million
— The estimated annual savings from ending pay hikes based solely on seniority.
The preliminary budget for fiscal years 2010 through 2014 exempts the Department of Education from the staff reductions and budget cuts imposed on other city agencies. This preferential treatment, which includes guaranteed annual raises for teachers while other municipal workers face wage freezes, warrants scrutiny regarding its fiscal justification.
Recommendations related to Education Spending
The City should re-evaluate the highly favored status of teachers and the Department of Education in the budget, given the current fiscal constraints.
Key Data
$150 Million
— Cost of teacher raises in the current fiscal year.
$500 Million
— Cost of teacher raises in the next fiscal year.
New York State's 2010-11 budget proposal addresses a $6.7 billion deficit by targeting school aid and Medicaid for significant spending reductions, as these areas comprise 40% of state operating funds. Despite these cuts, the proposed $19.9 billion in school aid remains nearly $1 billion higher than the amount spent in the 2007-08 fiscal year.
Recommendations related to Education Spending
The Legislature should seize the opportunity to move the State's finances toward structural balance by embracing the Governor's proposal for real and recurring spending reductions, which includes cuts to school aid.
Key Data
$19.9 billion
— The Governor's proposed school aid for the 2010-11 fiscal year.
$1.1 billion
— The projected increase in state operating funds dedicated to school aid for the next year without legislative action.
$160
— The proposed reduction in school aid on a per pupil basis.
40%
— The portion of State operating funds comprised by school aid and Medicaid combined.
The state budget agreement includes a provision that restricts local school districts from modifying retiree health insurance benefits without collective bargaining, limiting management's ability to control costs. Future administrations must resist further demands from employee groups for similar benefit protections to prevent additional fiscal strain.
Recommendations related to Education Spending
The Governor and future administrations must stand firm against demands from other employee groups for the same retiree health insurance benefit protections granted to teachers' unions.
New York City faces a $5 billion budget gap, necessitating a teachers' contract that prioritizes fiscal responsibility through value-generating concessions and reforms to staffing practices. Key proposals include implementing merit pay, ending indefinite salary payments for teachers not currently in classrooms, and streamlining the disciplinary process for unsatisfactory performance.
Recommendations related to Education Spending
Salary increases should be funded with value-generating concessions.
Pension and health insurance reforms should be implemented.
Merit pay should replace seniority rewards.
Compensation for teachers who are not teaching should end.
Unsatisfactory teachers should be terminated quickly.
Financial incentives should be provided to teachers in shortage areas willing to commit to fixed-term assignments in hard-to-staff schools.
Key Data
$655 million
— Annual cost of two 4 percent raises for teachers.
$285 million
— Annual savings from ending seniority increments after ten years.
$74 million
— Annual cost of the Absent Teacher Reserve.
$60 million
— Annual cost of teachers in rubber rooms.
$100 million
— Projected annual savings from pension changes for the next 20 years.
$125 million
— Savings from requiring retirees to pay half the health insurance premium.
New York's education aid to local school districts has more than doubled over the last decade to $26 billion, with plans for further increases despite the state spending 65% more per pupil than the national average. The state should address this unsustainable growth by reevaluating aid distribution, as current funding is directed to both needy and wealthy districts that possess sufficient resources.
Recommendations related to Education Spending
The state must cut spending to avoid more painful across-the-board reductions in the future.
New York should stop sending education aid to wealthy districts that already have abundant resources to support well-funded schools.
Key Data
$26 billion
— Education aid to local school districts.
20%
— Additional increases in education aid planned over the next three years.
65%
— Amount more New York spends per pupil compared to the national average.
New York State is urged to veto legislation that prevents school districts from adjusting retiree health insurance benefits without union approval, as this mandate restricts the ability to manage rising costs. Eliminating such requirements would help local governments reduce financial burdens and better control school district expenditures.
Recommendations related to Education Spending
The Governor should veto A4628, a bill that would renew the provision that prohibits school districts from reducing the health insurance benefits offered to retirees unless the changes are approved by the local teachers union.
State leaders should stop standing in the way of school district managers that find ways to provide satisfactory benefits at reduced costs.
New York should roll back costly mandates whenever the opportunity arises.
The New York City Department of Education's fiscal transparency and oversight mechanisms require improvement, specifically regarding the integration of its internal information systems with the city's broader financial management system. Strengthening the auditing role of the Comptroller and establishing firm deadlines for system integration are necessary steps to ensure accountability in the department's contracting and procurement processes.
Recommendations related to Education Spending
The New York City Comptroller’s role in auditing the Department of Education should be codified.
A firm deadline should be set by which the Department of Education must fully integrate with the City’s Financial Management System.
The relationship between the Comptroller and the Department of Education should be formalized to remove ambiguity about the Comptroller’s role.
Key Data
$25,000
— The threshold for all Department of Education contracts, competitive and non-competitive, that must be registered with the Comptroller.
New York should reform school aid formulas by eliminating high tax aid and hold harmless provisions to better target funding based on need and ability to pay. These changes, alongside adjustments to higher education tuition and assessments, would help address the state's significant fiscal gaps.
Recommendations related to Education Spending
The state should enact the Governor's proposed reductions in school aid based on need and ability to pay, targeting the greatest percentage cuts to the wealthiest districts.
Policymakers should eliminate high tax aid and hold harmless provisions, as these measures in the new aid formulas work against the principle of allocating school aid based on need.
Key Data
$205 million
— Savings from eliminating high tax aid in the upcoming fiscal year.
$670 million
— Savings from dropping hold harmless provisions from the past two fiscal years.
$197.0 million
— Revenue from the SUNY/CUNY tuition increase.
$10.0 million
— Revenue from the higher education assessment on research foundations.
In order to promote fiscal reform, the Citizens Budget Commission (CBC) convened three separate agenda-setting conferences for key stakeholders in the state budget process in 2007. Each session focused on one aspect of fiscal reform with a goal of identifying specific changes for the coming budget cycle. The expectation is…
New York's reliance on local property taxes to fund schools creates significant disparities in per-pupil spending, with wealthy districts spending over $21,000 per student while others spend significantly less. To address these inequities, the state has implemented a foundation-based aid approach, though political compromises have often diluted the intended equalizing effects of these reforms.
Recommendations related to Education Spending
The state should distribute state education aid using an equalization or uniform tax effort approach to promote equity in both the local tax burden and spending per pupil.
The state should convert the public employee pension system to a defined contribution rather than a defined benefit system to reduce unnecessarily expensive costs.
The state should reform the Taylor Law to make the dispute resolution process more timely and avoid the fiscal uncertainties of expired and retroactive contracts.
The state should change the criteria and constraints used by arbitrators to ensure they weigh the ability to pay more heavily.
The state should consolidate property tax assessment units to improve efficiency and ensure a greater level of assessment equity among municipalities.
Key Data
$184,799
— Average property value per pupil for the 10 percent of school districts that spend the least per pupil.
$1,422,470
— Average property value per pupil for the 10 percent of school districts that spend the most per pupil.
72%
— Increase in district expenditures from school year 1995 to 2005.
$18 Billion
— Total increase in district expenditures from school year 1995 to 2005.
97%
— Growth in health insurance, pensions, social security, and other benefits for teachers from 1995 to 2005.
$713
— Average increase in state aid to school districts per pupil due to the STAR program.
The state's recent school-funding formula changes allocated excessive resources to wealthy districts rather than prioritizing need. Future reforms must ensure funding is distributed based on actual need and implement stricter accountability standards for school officials regarding student performance.
Recommendations related to Education Spending
Next year, the new funding formula should operate only on the basis of need, not be distorted by last-minute political deal-making that disproportionately benefits narrow and wealthy constituencies.
The law must hold school officials responsible for student performance - and remove officials who fail consistently.
New York State spends $10,665 per pupil on average, which is over 30% above the national average of $8,041, yet the system faces significant funding inequities and inefficiencies. To address these challenges, the state should shift the burden of school funding from local districts to the state level while implementing reforms like eliminating inefficiencies and broadening the tax base to generate billions in new revenue.
Recommendations related to Education Spending
Eliminating inefficiencies in the system could generate at least $1.2 billion annually.
Expanding gambling activities could generate an additional $2 billion.
Broadening the tax base through increased enforcement of sales tax on remote purchases, extending the sales tax to professional services, and revising the corporate income tax could raise up to $2.6 billion a year.
The State, rather than local school districts, should be the primary source of new funding to alleviate inequities.
The State should consider assuming other local costs, such as that of pensions, to free up local revenues for education.
Key Data
$10,665
— Average per-pupil spending in New York State after adjusting for regional cost differences.
$8,041
— U.S. average per-pupil spending.
$1.2 billion
— Annual savings from eliminating inefficiencies in the education system.
$2 billion
— Potential revenue from expanding gambling activities.
$2.6 billion
— Potential annual revenue from broadening the tax base.
$750 million
— Potential savings if the State eliminated or reduced aid to wealthy districts.
New York State's school aid programs, including the School Tax Relief (STAR) program, are inequitable, with the poorest districts receiving the least aid while wealthier districts receive significantly more. Reforming these programs to better target resources toward poorer districts is essential to reduce the heavy local school tax burden and improve educational equity.
Recommendations related to Education Spending
The state should redesign State school aid programs including STAR to better serve poorer districts and thereby lower their local school tax burden.
Key Data
$3.4 billion
— Annual appropriations for the School Tax Relief (STAR) program in the current fiscal year.
$582 million
— Annual appropriations for the School Tax Relief (STAR) program in 1999.
28 percent
— Amount more in STAR aid per pupil that the wealthiest districts receive compared to the poorest districts.
$19,149
— Local revenue raised per pupil in the wealthy community of Great Neck.
$2,272
— Revenue per pupil in the poorer upstate city of Utica.
New York State's school finance system relies heavily on local property taxes, creating significant disparities in per-pupil spending between wealthy and poor districts that the state must address to comply with court mandates. To achieve a more equitable system, the state should consider reforms such as centralizing funding, restructuring tax policies, or implementing luxury taxes on high-spending districts to redistribute resources.
Recommendations related to Education Spending
The state should fully fund education at the state level to spread the burden for raising revenues across a wide population group and eliminate disparities among districts.
New York should adopt school aid formulas that more effectively 'equalize' variations in local wealth by applying a uniform local tax rate across districts.
The state should finance the increment required to meet the court mandate at the state level rather than relying on local school districts to bear the responsibility.
Policymakers should free up existing resources to fund schools by cutting spending on other services such as Medicaid and the prison system.
The state should raise taxes to increase per pupil spending in districts failing to meet the target while considering the impact on economic competitiveness.
New York should raise as much of the needed revenue as possible from non-tax sources such as gambling, which does less harm to the state's economic competitiveness.
The state should restructure existing taxes to increase revenue and improve tax policy by broadening the tax base to include currently exempt items.
New York should impose a luxury tax on wealthy districts to level the playing field and curb excessive spending by the wealthiest districts.
Key Data
$8.4 billion
— Estimated cost of a statewide solution to the CFE-generated mandate.
$3.2 billion
— Amount committed to financing education in the form of the STAR program in school year 2004-05.
$42 billion
— Total revenues for public schools in New York State in the 2004-05 school year.
$1,200,109
— Average actual valuation of property per pupil among the highest spending 10 percent of districts in 2002-03.
$158,319
— Average actual valuation of property per pupil among the lowest spending 10 percent of districts in 2002-03.
$4.7 billion
— Lower bound of operating aid ordered by the court for New York City public schools.
New York State faces a court-mandated requirement to provide a sound basic education, with estimates for necessary annual funding ranging from $2.5 billion to $8.6 billion. To meet these costs, the state should prioritize internal efficiencies and non-tax revenues like gambling before considering tax increases, while also implementing reforms in accountability, classroom space management, and teacher compensation.
Recommendations related to Education Spending
The State, rather than local school districts, should be responsible for raising the additional funds needed for a sound basic education.
A significant portion of the resources needed for a sound basic education should be raised through the elimination of inefficiencies in the education system.
Expanded gambling activities should be used to generate about $2 billion annually for improved education.
A new statewide system of accountability for schools should be established.
The classroom space requirements for a sound basic education should be met through a combination of redistricting of existing schools and operating existing schools on a year-round schedule.
Teachers should be given financial incentives for better performance.
Financial incentives should be used to overcome shortages in selected teaching job titles.
The managerial discretion of principals should be expanded.
Key Data
$2.5 billion
— Minimum annual increase estimated by the Zarb Commission to meet acceptable standards statewide.
$8.6 billion
— High end of the range for combined annual operating and capital expenses for a sound basic education.
$12 billion
— Savings in capital expenses achievable by using rezoning and year-round education instead of new construction.
$1.2 billion
— Annual savings generated by making more efficient use of teacher time, consolidating small school districts, and reallocating state aid.
$2 billion
— Annual revenue that could be generated for improved education by expanding gambling activities.
$15 billion
— Total capital expenses needed statewide to upgrade and expand school facilities according to the CFE.
New York State must establish a coherent, comprehensive accountability system to ensure that the significant increase in education funding resulting from the Campaign for Fiscal Equity case is used effectively and efficiently. This system should align federal, state, and local standards while incorporating both input and outcome measures to track performance and resource utilization.
Recommendations related to Education Spending
The State should develop a single set of accountability tools that are uniform across the State, consistent with federal guidelines, and replace locally-generated systems.
All districts should be required to specify, in advance of receipt of new funds, the uses to which the new money will be put to ensure they are consistent with the CFE settlement.
Each district should be required to specify what progress it will achieve in the next four years with the additional funds, including qualitative measures of school performance.
Where standardized tests are used for accountability purposes, they should be based on 'value-added' methodologies to compare a student's performance to their own prior results.
The State should implement a qualitative assessment program as part of the State-wide accountability system, utilizing on-site visits by experts.
The State accountability system should include measures of the relative efficiency of how resources are used by schools and districts to ensure funds are used effectively.
Key Data
99%
— Districts in the State where ultimate accountability for school performance comes through the election of the school board.
40%
— Schools in New York City already designated as 'schools in need of improvement' and on the road to suffering federally-mandated sanctions.
12
— Years the federal government gave states to meet the ambitious goals of the No Child Left Behind Act.
200
— Pages long that some District Comprehensive Educational Plans (DCEPs) reached in the past, making them unusable as accountability tools.
New York City public schools face significant overcrowding, with the Campaign for Fiscal Equity proposing a $14.7 billion capital plan that relies heavily on new construction. Instead of this costly approach, the city could address space needs more efficiently and quickly by rezoning school districts and implementing year-round education schedules.
Recommendations related to Education Spending
New York City should adopt new zoning policies to better balance capacity and demand across school districts.
The city should implement year-round education schedules to increase school capacity by utilizing buildings throughout the entire calendar year.
Policymakers should prioritize reconfiguring grades across schools, such as shifting ninth-grade students to middle schools, to alleviate overcrowding in high schools.
The Court should not dismiss policy options that use existing facilities wisely, such as rezoning and year-round schooling, to avoid the high costs and delays of new construction.
Key Data
$14.7 billion
— Estimated cost in 2003 dollars needed to provide New York City students with the facilities required for a 'sound basic education'.
216,000
— Long-term shortage of school seats identified by the Campaign for Fiscal Equity.
72,199
— Citywide surplus capacity of school seats available before rezoning.
1,268,574
— Total capacity available for student enrollment after implementing year-round education and rezoning.
$12.3 billion
— Amount of the total capital needs allocated specifically for new school construction.
New York State can achieve significant savings by reallocating state aid away from wealthy districts that do not require it and by addressing inefficiencies in teacher time usage and school district administration. Implementing these reforms, including consolidating small districts and capping administrative expenses, would allow funds to be redirected toward providing a sound basic education where it is most needed.
Recommendations related to Education Spending
The State should eliminate or redistribute aid that is poorly targeted to wealthy school districts.
A required minimum tax effort would generate additional local tax funds in some districts and further reduce the need for State aid.
The State should reduce combined preparation and administrative periods for junior high and high school teachers from 10 to five per week.
The State should reduce preparation periods for elementary school teachers from five to three per week.
The State should eliminate sabbatical leaves for travel and study.
The State should eliminate subsidized time for union activities.
Penalties or mandates will be required in order to ensure that the savings from school district consolidation are achieved.
The State should set one or more caps on administrative costs and oblige the higher cost districts to bring their costs closer to the statewide average.
Key Data
$750 million
— Amount of state aid currently misallocated to school districts that do not need the help.
$475 million
— Annual savings from correcting inefficiencies in teacher time usage and school district administration.
$350,000,000
— Savings from reallocating teacher time to instructional activities.
$126 million
— Total annual savings from eliminating inefficiencies related to small school district operations and excessive administrative spending.
$100 million
— Annual savings from consolidating small school districts.
$26.0 million
— Annual savings from applying both administrative cost caps to school districts.
New York's proposal to fund education through expanded gambling revenues, such as video lottery terminals, faces significant challenges regarding long-term sustainability, regressive tax impacts, and rising social costs. While gambling expansion could generate billions, these revenues are unlikely to provide a stable or sufficient solution for the state's education finance needs.
Recommendations related to Education Spending
Implement age restrictions for participation to mitigate the social costs of expanded gambling.
Enforce the exclusion of individuals from gambling venues to address the negative social impacts of problem gambling.
Establish a limitation on the dollar amount of bills that machines will accept to help control gambling behavior.
Require that the state pay out winnings over a certain amount by check to reduce the immediate availability of cash for further gambling.
Impose limitations on the number, location, and maximum withdrawals of ATMs to curb excessive gambling.
Key Data
$2 billion
— Governor's projected annual receipts from video lottery terminals in five years.
$1.1 billion
— Estimated annual social cost of gambling in New York State.
$5.4 billion
— Total lottery ticket sales in 2003.
$2.7 billion
— Pooled wagers from racetrack and OTB wagering in 2003.
$9 billion
— Annual spending on legal gambling in New York State combined with casino gambling.
$10,330
— Estimated annual cost to society of a pathological gambler.
The report examines school finance litigation and reform across seven states, finding that court victories do not guarantee timely or effective policy responses and that increased spending does not automatically lead to improved educational outcomes. It emphasizes that additional funding is most likely to improve student achievement when it is well-targeted, particularly through investments in early childhood education and smaller class sizes in early elementary grades.
Recommendations related to Education Spending
Policymakers should recognize that additional spending is more likely to result in gains in student achievement when the money is well targeted.
States should prioritize the expansion of pre-kindergarten opportunities to improve student performance.
States should implement small class sizes in the early elementary school grades to achieve positive educational results.
Political leaders must be supportive of court policy directions to ensure that reform action is prompt and effective.
Policymakers should understand that a court victory does not ensure timely or effective policy responses, requiring proactive legislative engagement.
Key Data
$490 Million
— The amount by which KERA increased education funding in the 1990-91 school year.
$825 Million
— The amount New Hampshire committed for education in the 2000-01 biennium.
$1.02 Billion
— The increase in state education aid in New Jersey between 1989-90 and 1992-93.
$1.4 Billion
— The two-year increase in state funding for education enacted by Ohio in Spring 2001.
$18.8 Billion
— Total spending on public education in Texas in 1996-97.
$922 Million
— The estimated Education Fund for Vermont in the 2000-01 school year.
New York State can generate significant revenue to fund court-ordered education initiatives by broadening the sales tax base to include more retail and professional services, and by reforming corporate income tax laws to close loopholes. These measures, alongside improved enforcement of remote and internet sales tax collections, offer viable paths to secure the necessary funding for school finance reform.
Recommendations related to Education Spending
The State should embrace the national Streamlined Sales Tax Project to ensure that taxes on internet and remote sales can be collected in the future.
The State should broaden the base of the sales tax to include many retail services that are not subject to tax.
The State should apply the sales tax to professional services when they are sold to consumers.
The State should reform its corporate income tax laws to capture income on which corporations are now able to avoid paying taxes.
The State should establish a "throwback" rule to enable the state to capture revenues by disregarding "nowhere" income in apportioning liability.
Key Data
$40 million to $590 million
— Potential annual yield from increased state sales tax collections if the Streamlined Sales Tax Project is fully implemented.
$950 million
— Potential additional annual revenue from broadening the sales tax base to include many retail services not currently subject to tax.
$320 million to $435 million
— Potential annual revenue from reforming corporate income tax laws to capture income on which corporations currently avoid paying taxes.
$220 million
— Additional corporate income tax revenue that would be generated by adopting mandatory combined reporting.
$1.5 billion
— Potential annual revenue if currently exempt selected retail services were subject to taxation.
$2.6 billion
— Potential revenue from a 4 percent sales tax imposed on both business-to-business and business-to-consumer professional services.
New York City must reform its public school system by shifting to statewide funding to alleviate the high local tax burden and implementing more efficient management strategies, such as year-round schooling and performance-based teacher compensation. These changes are essential to meet the constitutional mandate for a sound basic education without relying solely on increased spending.
Recommendations related to Education Spending
Restructure the pay schedule to make a larger share of compensation conditioned on job performance and to de-emphasize longevity and graduate educational credits.
Use financial incentives to overcome teacher shortages by offering differentials in the range of 20 to 25 percent to teachers qualified for and serving in specific titles deemed in a shortage condition.
Increase teacher time spent on classroom instruction by reducing preparation periods and eliminating sabbatical leaves and subsidized time for union activities.
Enhance principals' managerial discretion by modifying seniority rules to allow principals to select teachers for given posts from among multiple candidates with the most seniority.
Provide all additional resources necessary to ensure that New York's students receive a sound basic education through statewide revenues rather than local mandates.
Key Data
$14.7 billion
— The estimated capital needs to provide New York City students with the facilities needed for a "sound basic education."
48 percent
— The share of non-federal revenue New York State provides for its schools, compared to a national median of 57 percent.
171 percent
— The amount New Yorkers pay in local taxes relative to the national average.
1,268,574
— The total capacity available for students from year-round education and full use of capacity through rezoning.
4,250
— The equivalent number of teachers that could be added to the payroll by reallocating teacher time spent on non-instructional activities.
New York State's public education system is characterized by high per-pupil spending, a low share of state funding, and significant disparities between school districts. To address these inequities and comply with court rulings, the state must determine the cost of providing a sound basic education in New York City and enact necessary funding and accountability reforms.
Recommendations related to Education Spending
The Governor and Legislature must determine the cost of providing a "sound basic education" in New York City.
The Governor and Legislature must enact appropriate funding and accountability reforms for New York City schools by July 30, 2004.
Key Data
$10,922
— Average per-pupil spending by New York school districts in fiscal year 2000-01.
46.8%
— Share of nonfederal funds New York school districts received from the State in school year 1999-00.
56.7%
— National average share of nonfederal funds school districts received from the state in school year 1999-00.
15%
— Index of variation in per-pupil spending for New York State, placing it behind 40 of the 50 states.
New York State faces a significant fiscal crisis, necessitating a multi-year plan to align expenditures with recurring revenues through targeted spending cuts and structural reforms. This includes reevaluating school aid to prioritize needier districts and implementing broader fiscal management changes to ensure long-term stability.
Recommendations related to Education Spending
Significant school aid cuts should be designed to be concentrated in the wealthiest districts in the State, where the spending per pupil is well above the statewide average.
The school aid and Medicaid reductions should be structured to favor the neediest districts and beneficiaries.
The State’s long-run agenda should include school finance reform that helps narrow gaps in per-pupil spending between rich and poor school districts.
A more rational distribution of aid would give a district State funds only if it cannot raise the median spending per pupil, after weighting for need, by taxing itself at a rate that represents a statewide standard of equity.
Key Data
$1,267 Million
— Proposed expense reduction in school aid for fiscal year 2003-04.
$7.3 Billion
— Increase in school aid from school years 1995-96 to 2002-03.
$913 Million
— Average annual increase in school aid from school years 1995-96 to 2002-03.
11.4%
— Reduction in State aid for the 50 wealthiest districts.
6.8%
— Reduction in State aid for the 50 poorest districts.
New York City's special education system costs $3.2 billion annually, with $18,919 spent per child, yet only one in six students receives a diploma. Reforms to move students to less restrictive environments and improve support service efficiency could generate $267 million in annual savings.
Recommendations related to Education Spending
The City should move enough students (about 30,000) from the most restrictive settings to less restrictive settings to bring its pattern of placements into line with the rest of New York State.
The City should apply national best practices to let about 6,400 students receive preventive services in regular classrooms rather than in special education.
The City should streamline support services by eliminating unnecessary administrative personnel, revising evaluation procedures, and changing transportation arrangements.
Key Data
$3.2 billion
— Total annual cost of special education in New York City.
$18,919
— Annual cost per child for special education in New York City.
168,000
— Number of children reached by special education in New York City.
$267 million
— Annual savings from restructuring special education.
$177 million
— Annual savings from new placement policies.
$140 million
— Annual savings from non-instructional efficiencies.
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