The New York State Education Department oversees the state’s public school system, managing the distribution of billions of dollars in annual aid to local districts and establishing regulatory standards for educational programs. This page covers CBC’s work on Foundation Aid reform, special education mandates, school district funding formulas, procurement and oversight of education contracts, and the School Tax Relief (STAR) program.
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..
Key Data
As of July 2024, total school aid for the upcoming school year is $38.6 billion, with education funding comprising nearly 30 percent of State Operating Funds spending.
In the 2023-24 school year, the State provided $2.8 billion to districts that fully fund a Sound Basic Education (SBE) before receiving a single dollar from the State.
Between the 2001-02 and 2011-12 school years, expenditures for preschool special education services grew by 73 percent, increasing from $792 million to $1.37 billion.
New York's school aid formulas, including Foundation Aid and the STAR program, require reform to better align funding with actual student needs and local fiscal capacity rather than outdated metrics. By eliminating provisions like "hold harmless" and reallocating funds from affluent districts, the state can ensure resources are directed where they are most needed while addressing a projected structural budget gap.
Recommendations related to New York State Education Department (NYSED)
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
— Projected structural budget gap for New York State by fiscal year 2028.
$2.8 billion
— Amount provided by the State in the 2023-24 school year to districts that fully fund a sound basic education before receiving any State aid.
$10.4 billion
— Total funding for expense-based aids in the current year, including building construction, transportation, and vocational programs.
$3.3 billion
— Estimated cost of the School Tax Relief (STAR) program for the upcoming year.
$20.6 million
— Additional funding provided for expense-based aids compared to what the formulas would otherwise determine.
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 basic education, an additional $8.6 billion in state aid is allocated to other districts in excess of that basic standard.
Key Data
8.8%
— The increase in State school aid from the previous year.
$34.4 billion
— The previous year's total State school aid.
$37.4 billion
— The total amount of State school aid for the 2023-24 school year.
10.2%
— The rise in per-pupil State aid.
$2.8 billion
— The amount of State aid directed to 152 districts that fully support a Sound Basic Education with local and regular federal funding.
$8.6 billion
— The amount of State aid going to other districts in excess of the Sound Basic Education level.
New York State's Foundation Aid formula fails to ensure all school districts have the resources to provide a sound basic education, as it relies on outdated poverty measures and arbitrary funding limitations. Consequently, 29 school districts remain underfunded by nearly $83 million, while wealthy districts continue to receive disproportionate aid through poorly targeted programs like High Tax Aid.
Recommendations related to New York State Education Department (NYSED)
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
— Estimated 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.
$223 million
— Additional State aid specifically targeted to wealthy districts through High Tax Aid.
$240 million
— Annual total of Library, Textbook, and Software Aids that do not take account of district wealth.
$18.4 billion
— Foundation Aid component of the total $27.3 billion in education aid for school year 2019-2020.
$961 million
— Increase in total formula-based school aid in the enacted Fiscal Year 2020 Budget.
A coalition of organizations is advocating for comprehensive procurement reforms in the state budget, including the establishment of an Inspector General for the New York State Education Department and stricter oversight of state contracts. These proposed measures aim to increase transparency and reduce conflicts of interest by requiring competitive bidding, empowering the comptroller to review large contracts, and creating a public database for subsidies.
Recommendations related to New York State Education Department (NYSED)
Require competitive and transparent contracting for the award of state funds by all state agencies, authorities, and affiliates.
Transfer responsibility for awarding all economic development awards to the Empire State Development Corporation (ESDC), and end awards by state non-profits and SUNY.
Empower the comptroller to review and approve all state contracts over $250k.
Prohibit state authorities, state corporations, and state non-profits from doing business with their board members.
Create a ‘Database of Deals’ that allows the public to see the total value of all forms of subsidies awarded to a business.
Key Data
$250k
— The threshold for state contracts that the comptroller should be empowered to review and approve.
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 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…
The New York State Education Department is the subject of an agency profile that directs readers to a comprehensive deep dive into its operations. This report serves as an overview of the department's role and functions within the state.
New York's preschool special education system faces significant challenges, including a 73 percent increase in service expenditures to $1.37 billion between 2001 and 2012, alongside documented instances of fraud and mismanagement. Proposed legislation aims to curb these issues by mandating provider audits, requiring qualified leadership, and tasking the State Education Department with studying more effective reimbursement and monitoring protocols.
Recommendations related to New York State Education Department (NYSED)
The state should approve legislation A7302-A/S5568-A to improve the oversight of preschool special education program providers.
Every provider should be audited at least once by the State Comptroller by March 31, 2018.
Executive Directors of providers should be fully engaged and qualified for their positions.
A school district's Committee on Preschool Special Education (CPSE) should be required to consent in writing whenever the same program provider conducts the evaluation and also provides services.
The State Education Department (SED) should be tasked to complete a study of alternative reimbursement methodologies and monitoring protocols to identify further reforms.
Key Data
700
— Number of agencies SED used to provide services in 2012.
$12 to $38 per hour
— Range of rates for an hour of SEIT in the Western New York region in 2012.
$23 to $58 per hour
— Range of rates for an hour of SEIT in the Long Island region in 2012.
91 percent
— Increase in the number of preschoolers receiving more than one authorized service from 2001-02 to 2011-12.
$1.37 billion
— Total expenditures for preschool special education services by the end of the 2011-12 school year.
99
— Instances of inappropriately documented spending and mistaken billing revealed by OSC and SED audits from 2007 to 2012.
New York's preschool special education system has seen expenditures grow 73 percent to $1.37 billion between 2001 and 2012, driven by a 27 percent increase in the number of children served and a 91 percent rise in service intensity. Proposed legislation aims to curb fraud and conflicts of interest by mandating provider audits, requiring qualified executive leadership, and establishing oversight for providers that both evaluate and serve children.
Recommendations related to New York State Education Department (NYSED)
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.
Legislation 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
$1.37 billion
— Total expenditures for preschool special education services in the 2011-12 school year, representing a 73 percent increase over the decade.
77,096
— Number of children receiving preschool special education services in the 2011-12 school year, up from 60,536 in 2001-02.
19,836
— Number of preschoolers receiving more than one authorized service in 2011-12, an increase of 91 percent from 10,408 a decade prior.
$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 the Long Island region in 2012.
3.5 percent
— Decline in statewide public school enrollment from the 2001-02 to 2011-12 school years.
New York's reliance on competitive grants to distribute school aid has shown limited efficacy, with few districts applying or receiving funds, and the program failing to reach a significant portion of students. Instead of expanding these competitive programs, the state should prioritize distributing school aid through formulas that account for student need and district wealth to ensure funds reach those who require them most.
Recommendations related to New York State Education Department (NYSED)
The state should target school aid through formulas that measure student need and district ability to pay rather than relying on competitive grants.
If specific education programs are deemed key to improving the 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.
$10.2 million
— The total amount of performance improvement grants awarded from the $25 million available.
$7.1 million
— The total amount of management efficiency grants awarded.
$17 million
— The total amount of competitive grant funds awarded to date from a $50 million pool.
3.6 percent
— The share of pupils statewide that benefit from the performance improvement grants.
New York State imposes 227 special education mandates that exceed federal requirements, creating unnecessary costs without improving service quality. Legislative action is needed to pass the proposed mandate relief package, which includes streamlining administrative requirements, rationalizing payment rates, and reforming due process procedures.
Recommendations related to New York State Education Department (NYSED)
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 state should 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 enact reforms to reduce administrative and paperwork requirements for school districts.
The state should establish more rational regional payment rates for certain special education service providers.
The timeline for due process hearings should be shortened to prevent drawn-out and costly proceedings.
The state should require mediation before disputes proceed to impartial hearings.
Key Data
227
— Number of distinct special education mandates imposed by New York State that exceed federal law requirements.
New York State imposes over 200 special education mandates beyond federal requirements, driving unsustainable cost growth that necessitates reform. Proposed changes would align state procedures with federal standards, allowing school districts to tailor evaluations to student needs rather than adhering to rigid, bureaucratic requirements.
Recommendations related to New York State Education Department (NYSED)
The Regents should approve the proposed changes in November and resist the temptation to weaken them or postpone them once again.
The 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 requires that each evaluation include a physical exam, psychological evaluation, social history, classroom observation and a functional behavior assessment when behavior is a concern.
Key Data
200
— Number of special education mandates imposed by New York State beyond those required by federal law.
$10,874
— Average cost of instruction per general education student in New York State in 2008-09.
$26,551
— Average cost of instruction per special education student in New York State in 2008-09.
7.5 percent
— Average annual rate of increase for special education instructional spending over the past decade.
5.5
— Student-to-staff ratio in New York special education systems.
10.1
— U.S. average student-to-staff ratio for special education.
New York State imposes over 200 special education mandates beyond federal requirements, resulting in significantly higher instructional costs and the most intensive staffing levels in the nation. To address unsustainable spending growth and limited revenue, the state should adopt proposed mandate relief measures that align local procedures with federal standards and grant school districts greater flexibility.
Recommendations related to New York State Education Department (NYSED)
The Board of Regents should approve the original list of special education mandate relief changes currently under consideration.
The State Legislature should pass the necessary changes to State law to align special education procedures with federal requirements.
The membership of the Committee on Special Education (CSE) should be conformed to the federal IEP team membership by repealing state-imposed additional requirements.
The state should adopt the federal standard for initial evaluations by repealing the requirement in State law that each evaluation include a physical examination, psychological evaluation, social history, and other specific assessments.
The requirement in law that Boards of Education have plans and policies for appropriate declassification of students with disabilities should be repealed.
Key Data
$10,874
— Average cost of instruction per general education student in New York State in 2008-09.
$26,551
— Average cost of instruction per special education student in New York State in 2008-09.
7.5 percent
— Average annual growth rate of instructional spending for special education over the past decade.
5.5
— New York's student-to-staff ratio for special education.
10.1
— U.S. average student-to-staff ratio for special education.
$1.3 billion
— Amount cut from state aid for school year 2011-12.
New York State needs to align its conflicting federal, state, and local education accountability systems to ensure that increased funding leads to improved student performance. The state should implement a comprehensive framework that includes clear input and outcome measures, efficiency evaluations, and consistent, fair consequences for both success and failure.
Recommendations related to New York State Education Department (NYSED)
The State should implement a consistent State-wide accountability program that uses a single set of uniform tools consistent with federal guidelines to replace locally-generated systems.
New funds should only be used for purposes consistent with the CFE settlement, with districts required to specify in advance how new money will be utilized.
Additional monies should be a catalyst for making the use of other funds more effective, requiring districts to specify how non-CFE funding will be re-directed to achieve court-mandated goals.
Districts should be required to specify performance goals for the year that include qualitative measures like graduation rates, college readiness, and attendance, rather than relying solely on standardized test scores.
Where standardized tests are used for accountability purposes, they should be based on 'value-added' methodologies that compare a student's performance to their own prior results rather than to other students.
Statistically valid methods of assessing student achievement other than through standardized tests should also be incorporated into the accountability system, such as structured portfolio assessments.
Accountability systems should incorporate other quantifiable measures of performance, such as student safety, parent engagement, attendance, and school facility quality.
Qualitative assessment programs should be implemented as part of the State-wide accountability system, utilizing objective site visits by state officials and pedagogical experts on a rotating cycle.
The State accountability system should include measures of the relative efficiency of how resources are used by schools and districts, such as a ratio of inflation-adjusted per-pupil spending to value-added gains.
Clear and reasonable State-wide sanctions for schools should be developed and implemented consistently, ensuring they are graduating and aligned with federal mandates.
Key Data
40%
— Percentage of all schools in New York City designated as 'schools in need of improvement' and on the road to suffering federally-mandated sanctions.
12 years
— Timeframe given by the federal government under the No Child Left Behind Act for states to meet ambitious goals of having every student meet state standards.
40 children
— Minimum group size required for student results to be disaggregated and reported separately under federal and state standards.
99%
— Percentage of districts in the state where ultimate accountability for school performance comes through the election of the school board by the voters.
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