The New York City Department of Education budget funds the largest public school system in the United States, covering the costs of instruction, school administration, and student support services for hundreds of thousands of students. This page covers CBC’s work on school enrollment trends, per-student spending, capital planning and school construction, the state class size reduction mandate, and strategies for improving operational efficiency.
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 State should extend mayoral control for four years, as proposed by Governor Kathy Hochul.
The City should reestablish weighted student funding as the primary allocation method for school budgets.
Key Data
In March 2026, the CBC reported that NYC public school enrollment decreased by 163,046 students, or 17%, between school years 2014-15 and 2023-24.
According to a March 2026 report, the number of severely underutilized school buildings has grown, with 380 schools operating below 60% capacity in school year 2022-23 compared to 187 in school year 2014-15.
In March 2026, the CBC noted that projected funding for the State's class size reduction mandate is expected to reach $1.6 billion in fiscal year 2027.
In May 2024, the CBC highlighted that per-student spending at K-12 schools was expected to reach $39,304 in fiscal year 2025, representing a 26.3% increase since fiscal year 2020.
New York City public school enrollment has declined by 163,046 students between 2014 and 2024, yet the City continues to use "hold harmless" funding that keeps budgets disconnected from actual student counts. To address this, the City should shift to weighted student funding based on actual enrollment, consolidate underutilized schools, and seek relief from the state's class size reduction mandate to save over $1.6 billion.
Recommendations related to NYC Department of Education Budget
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 State should extend mayoral control for four years, as proposed by Governor Kathy Hochul.
The City should reestablish weighted student funding as the primary allocation method for school budgets.
Key Data
$400 million
— The amount the City would save annually if it resumed funding schools based on the number and needs of students rather than 'hold harmless' funding.
$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 in public, private, charter schools, and home instruction declined between school years 2014–15 and 2023–24.
380
— The number of schools that were below 60 percent capacity in school year 2022-23, up from 187 in school year 2014-15.
$18,294
— The average per-student cost in small schools with fewer than 400 students, which is higher than in medium or large schools.
$870
— The cost per square foot for building new schools, which the City should stop doing for the time being.
New York City's budget faces significant strain due to chronic underbudgeting, including specific shortfalls in education funding like the class size mandate and pre-K programs. To restore fiscal stability, the city must implement accurate revenue and expenditure estimates, prioritize high-impact services, and align spending with actual needs rather than relying on unsustainable growth.
Recommendations related to NYC Department of Education Budget
The administration should align funding with declining public school enrollment, which has dropped 13 percent since the 2015-16 school year.
The city must stop underbudgeting for known expenses, including those within the Department of Education, to ensure the preliminary budget reflects the full cost of expected services.
The administration should identify the impact and cost-effectiveness of each service, including education programs, to preserve what works well and shrink what does not.
Key Data
$467 Million
— The amount of underbudgeting for the Class Size Mandate in the FY 2027 budget.
$92 Million
— The amount of underbudgeting for DOE Pre-K and 3-K in the FY 2027 budget.
$659 Million
— The amount of underbudgeting for 'Other DOE' expenses in the FY 2027 budget.
13 percent
— The decline in public school enrollment since the 2015-16 school year.
The New York City Executive Budget for fiscal year 2025 proposes a 10.2 percent increase in city-funded Department of Education spending, totaling $2.1 billion, even as total expenditures are expected to decrease slightly due to the expiration of federal COVID-19 aid. Simultaneously, per-student spending at K-12 schools is projected to reach $39,304 in 2025, representing a 26.3 percent increase since 2020 as enrollment remains 10.4 percent below pre-pandemic levels.
Key Data
$2.1 billion
— The proposed increase in City-funded Department of Education spending for fiscal year 2025.
$2.4 billion
— The decrease in federal COVID aid contributing to a slight overall reduction in total Department of Education expenditures.
$39,304
— The expected per-student spending at K-12 Department of Education schools in fiscal year 2025.
26.3 percent
— The increase in per-student spending at K-12 schools since fiscal year 2020.
10.4 percent
— The amount by which K-12 Department of Education enrollment remains below pre-COVID levels.
15.2 percent
— The increase in total Department of Education expenditures since fiscal year 2020.
$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 faces significant fiscal challenges, including a $11.3 billion budget gap for fiscal year 2025, which is exacerbated by underfunded programs like Summer Rising and 3-K. Additionally, the Department of Education faces rising costs from the state's class size reduction mandate, which is estimated to cost $1.3 billion annually once fully phased in.
Recommendations related to NYC Department of Education Budget
The City should prioritize effective programs and shift other funds to support them, while eliminating or scaling back those that are less impactful regarding the federal fiscal cliff.
The City must determine if the financial plan will increase the budget for Carter Cases and student transportation to the actual levels they have historically reached.
The City needs to clarify if the costs of complying with the class size reduction mandate are fully reflected in the financial plan and how they impact the budget gap.
Key Data
$96 million
— Shortfall for the City's summer-school program, Summer Rising, in fiscal year 2024.
$945 million
— Federal fiscal cliff for the Department of Education and Citywide programs starting in fiscal year 2026.
$433 million
— Estimated cost of compliance with the class size reduction mandate in fiscal year 2026.
$1.3 billion
— Estimated annual cost of the class size reduction mandate when fully phased in.
$1 billion
— Estimated annual cost of underbudgeting for uniformed overtime, Carter Cases, and student transportation.
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 NYC Fiscal Year 2024 Executive Budget includes a significant re-estimation of Department of Education fringe benefit costs, which accounts for over one-quarter of the total savings initiative. While these measures help narrow budget gaps, the city still faces projected gaps reaching $11 billion by fiscal year 2027, necessitating further focus on operational efficiencies.
Recommendations related to NYC Department of Education Budget
The City should prioritize implementing additional PEGs that focus on improving efficiency—reducing costs without reducing services—to narrow budget gaps while preserving educational and other critical services.
Future budget actions should focus on prioritizing impactful programs and restructuring operations to preserve services, rather than reducing critical educational services unnecessarily.
The City should shift vacancies to where they are most needed and take steps to aggressively reform how it hires, especially for critical functions within the Department of Education and other agencies.
Key Data
28 percent
— of the total recurring value of the PEG comes from re-estimating the cost of DOE fringe benefits.
$4.6 billion
— is budgeted for DOE fringe benefits in fiscal year 2024 following the PEG reduction.
10.9 percent
— higher than the projected $4.1 billion in fiscal year 2023 for DOE fringe benefits.
3 percent
— of savings the Department of Education was directed to identify in the April 2023 OMB memo.
3.2 percent
— average annual increase of actual DOE fringe benefit spending over the past decade.
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 school years 2015-16 and 2021-22. With federal pandemic aid expiring and a projected budget gap of $12.0 billion by fiscal year 2026, the city must address rising per-student costs and manage the fiscal cliff created by the end of one-time funding.
Recommendations related to NYC Department of Education Budget
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
— Total New York City Department of Education budget in fiscal year 2023.
141,000
— Number of students by which K-12 enrollment declined between school years 2015-16 and 2021-22.
$37,136
— Amount spent per K-12 DOE student in fiscal year 2022.
$12.0 billion
— Likely budget gap for the City in fiscal year 2026.
$556 million
— Estimated fiscal cliff for programs currently funded by non-recurring federal pandemic aid in fiscal year 2026.
32.5 percent
— Growth in total DOE spending between fiscal years 2016 and 2022.
New York City's Department of Education faces a fiscal year 2024 budget of $36.5 billion, with per-student spending rising to over $37,000 in fiscal year 2022 despite a loss of 141,000 students since the 2015-16 school year. To address a projected $12.0 billion citywide budget gap by fiscal year 2026 and the expiration of federal pandemic aid, the City must evaluate program impacts and clarify how it will manage the resulting fiscal cliffs.
Recommendations related to NYC Department of Education Budget
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 City and State resources or shrink or end the programs.
The City should evaluate DOE programs and initiatives to ensure that they are delivering maximum impact to the target populations and modify programs accordingly.
Key Data
$37,000
— The amount spent per K-12 student in fiscal year 2022, which is an increase of $4,908 from fiscal year 2021.
$12.0 billion
— The likely City budget gap in fiscal year 2026, which could be even larger if there is a recession.
$500 million
— The amount the City consistently underbudgets annually for Carter Cases that fund private school tuition for special education students, pupil transportation, and charter schools.
141,000
— The number of students lost by K-12 schools between school years 2015-16 and 2021-22.
$321 million
— The estimated fiscal cliff in fiscal year 2025 due to expiring federal funds.
$556 million
— The estimated fiscal cliff in fiscal year 2026 due to expiring federal funds.
The proposed class size mandate for New York City public schools would impose significant, unfunded costs, with annual operating expenses for grades kindergarten through five estimated at at least $500 million. Rather than mandating a single strategy, the state should implement universal accountability systems that focus on student outcomes and allow districts to select evidence-based interventions tailored to their specific needs.
Recommendations related to NYC Department of Education Budget
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 to 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 number of students in New York State that the education system serves.
The fiscal year 2022 executive budget fails to utilize federal aid and tax revenue to stabilize long-term finances, instead funding recurring programs like 3-K for All without identifying necessary efficiencies. The plan relies on non-recurring savings and increases the workforce, leaving significant fiscal challenges for the next administration.
Recommendations related to NYC Department of Education Budget
The City should be implementing a regular, reasonably sized Program to Eliminate the Gap (PEG) to help prioritize programs, improve quality, and identify savings.
The City should budget regular deposits into its newly established Rainy Day Fund to ensure long-term fiscal stability.
The City should spread federal money more evenly over a few years to allow time to restructure spending to increase efficiency and preserve services.
Key Data
$15 billion
— Amount of additional federal aid provided to the City.
$5 billion
— Annual budget gaps projected for fiscal years 2023 to 2025.
$1 billion
— Amount of annual labor savings carried in fiscal years 2023 through 2025.
5,000
— Number of additional staff the City plans to add to the workforce.
$1.6 billion
— Amount the City reversed its plan to use from the Retiree Health Benefits Trust to balance the budget.
$200 million
— Amount the City is increasing its general reserve in fiscal year 2022.
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 school districts, including the New York City Department of Education, could save $846 million annually by aligning employee health insurance premium contributions with those of State employees. This adjustment would help address fiscal stress and budget gaps without directly reducing spending on classroom instruction.
Recommendations related to NYC Department of Education Budget
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
$846 million
— Annual savings if all New York school district employees contributed the same share of premiums as State employees.
$426 million
— Portion of the $846 million in annual savings attributable to New York City.
$7 billion
— Total annual spending by New York school districts on health insurance for employees, their families, and retirees.
$24,040
— Amount spent per public elementary and secondary school pupil in New York State in fiscal year 2018.
$6,813
— Amount spent per pupil on employee benefits in New York State in fiscal year 2018.
116%
— Percentage by which New York's per-pupil spending on employee benefits exceeds the national average.
New York City faces significant risks to its education budget, including potential shortfalls in state aid that could require either reduced funding for the Department of Education or the use of city funds to compensate. To address these fiscal challenges, the city should consider reducing DOE civilian headcount, limiting or eliminating the Absent Teacher Reserve, and scaling back planned new school construction.
Recommendations related to NYC Department of Education Budget
The City should reduce DOE civilian headcount by 500 positions by fiscal year 2022 to save about $60 million annually.
City leaders should implement time limits on or the elimination of the Absent Teacher Reserve to generate potential savings of about $60 million per year.
The City should reduce the five-year capital plan by $2.4 billion through operational strategies to reduce planned new school construction.
The State should better target education funding to high-need districts rather than distributing aid in the same proportion as fiscal year 2021.
Key Data
$60 million
— Annual savings from reducing DOE civilian headcount by 500 positions by fiscal year 2022.
$136 million
— Cost of the Absent Teacher Reserve to the City during the 2017-2018 school year.
$60 million
— Potential annual savings from limiting or eliminating the Absent Teacher Reserve.
$2.4 billion
— Amount the five-year capital plan could be reduced through operational strategies to reduce planned new school construction.
$1.1 billion
— Amount State education aid could be less than the City's projection in fiscal year 2022.
$1.3 billion
— Amount State education aid could be less than the City's projection in fiscal year 2023.
New York State's education funding formula is flawed, as it relies on outdated data and 'hold harmless' provisions that direct aid to wealthy districts rather than those with the greatest need. While the state spends more than enough in total to provide a sound basic education, reallocating these funds based on actual district wealth and needs would ensure all students receive adequate resources.
Recommendations related to NYC Department of Education Budget
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 overfunding wealthy districts.
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.
$1.8 billion
— The amount the wealthiest decile of districts spent more than needed to fund a sound basic education in school year 2017-2018.
$75 million
— The total amount of funding needed to bring the 25 districts that lacked sufficient resources to the level required for a sound basic education.
$223 million
— The amount of additional state aid targeted to wealthy districts through High Tax Aid.
$240 million
— The annual total of Library, Textbook, and Software Aids that do not account for district wealth.
$18.4 billion
— The amount of Foundation Aid in the $27.3 billion total state education aid for school year 2019-2020.
In 2017, the cost to educate an average New York City public elementary school class was $561,246, with middle school classes costing $590,351 and high school classes costing $534,050. While a significant portion of this funding supports classroom teachers and instructional services, the remaining budget covers school administration, ancillary services like food and transportation, physical plant maintenance, and central office operations.
Key Data
$561,246
— Cost to educate an average New York City public elementary school class in 2017.
$590,351
— Cost to educate an average New York City public middle school class.
$534,050
— Cost to educate an average New York City public high school class.
$24,402
— Average per student funding for elementary schools.
New York City's reliance on expensive new school construction to address crowding is inefficient, as alternative strategies like rezoning, repurposing existing seats, and adjusting admission policies could reduce the need for new capacity and save at least $2.4 billion. These cost-effective measures, combined with projected enrollment declines, offer a more sustainable approach to managing school space than the current capital plan.
Recommendations related to NYC Department of Education Budget
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.
High school crowding could be solved by capping enrollment at levels consistent with the DOE capacity standards, because adequate high school capacity exists citywide.
The conversion of space from non-instructional to classroom use could add significant additional capacity to schools.
Middle schools could be consolidated to fully or partially vacate a building that could be converted to an elementary or K-8 school.
Key Data
$9.1 billion
— Amount spent by the DOE from 2005 through September 2018 to build new schools with a capacity of 98,302 seats.
$7.9 billion
— Funding included in the DOE's capital plan for fiscal years 2020 to 2024 for 89 new school buildings with a capacity of 56,917 seats.
$2.4 billion
— Minimum amount of capital spending that could be reduced by utilizing alternative strategies to address school crowding.
$150 million
— Annual debt service savings that could be yielded for New York City and State by reducing the capital spending target.
$117,000
— Cost of constructing a new school seat in the 2015-2019 plan, which rose from just under $79,000 in the 2005-2009 plan.
618
— Number of the city's 1,413 school buildings that are currently considered crowded.
New York State's education funding formula fails to ensure all districts can provide a sound basic education, as aid is poorly targeted and relies on outdated measures of poverty and local wealth. Despite significant increases in total spending, 29 districts remain underfunded while wealthy districts continue to receive aid through inefficient programs like High Tax Aid.
Recommendations related to NYC Department of Education Budget
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 New York State school districts to provide a sound basic education to all students in school year 2020.
$83 million
— Total amount by which 29 school districts are underfunded despite historic state aid increases.
$223 million
— Additional state aid specifically targeted to wealthy districts through High Tax Aid.
$20 billion
— Increase in school district revenues between school year 2006-2007 and school year 2016-2017.
New York State's education funding is already sufficient to provide a sound basic education statewide, with projected revenues reaching $72 billion in 2020, which is $9.4 billion more than the $62.6 billion required. Instead of broad increases, the state should target aid to the 32 districts that currently lack the necessary resources to meet basic educational standards.
Recommendations related to NYC Department of Education Budget
The state should target the distribution of aid to districts that need it, rather than ensuring that almost every district receives more funding regardless of its circumstances.
New York should direct a state aid increase of just $164 million to the 32 districts that currently have insufficient resources to provide a sound basic education, ensuring statewide coverage without reducing aid to wealthy districts.
Key Data
$62.6 billion
— The estimated amount required to provide a sound basic education statewide according to state education aid formulas.
$72 billion
— The projected revenue for school districts from federal, state, and local sources in 2020.
$164 million
— The total funding gap for the 32 districts that currently lack the resources to provide a sound basic education.
$465 million
— The amount of state aid received by the 10% wealthiest districts in 2018-2019 despite already having sufficient resources.
$20 billion
— The total increase in district funds between school years 2006-2007 and 2016-2017.
New York State can ensure all school districts have the resources to provide a sound basic education by targeting $164 million in aid to the 32 underfunded districts, rather than increasing total aid by the billions proposed by others. This approach addresses the actual resource gaps while acknowledging that total education funding has already grown by 41 percent over the past decade.
Recommendations related to NYC Department of Education Budget
The State could ensure all districts have the resources to provide an SBE by increasing aid by $164 million and targeting it to 32 of the state’s 674 districts that are underfunded.
This allocation should be prioritized during budget negotiations and State aid above this amount should be targeted to educational needs and balanced with the State’s fiscal realities.
Key Data
$164 million
— The amount by which state aid needs to increase to ensure all districts have the resources to provide a sound basic education.
$62.6 billion
— The total amount needed in 2020 to provide a sound basic education for New York’s students.
$72.0 billion
— The estimated amount school districts will spend in 2020.
$9.4 billion
— The amount by which estimated 2020 spending exceeds what is necessary to fund a sound basic education.
41 percent
— The rate at which school district revenues increased between the 2006-2007 and 2016-2017 school years.
$20 billion
— The total increase in school district revenues between the 2006-2007 and 2016-2017 school years.
New York State currently provides sufficient aggregate funding to ensure a sound basic education for all students, yet the distribution of state aid remains poorly targeted and relies on an outdated Foundation Aid formula. Rather than broad increases, the state should prioritize directing additional financial support specifically to the fewer than 35 districts that currently lack the resources to meet basic educational requirements.
Recommendations related to NYC Department of Education Budget
The State should target any increase in aid to those districts that need it most.
Policymakers should address the shortcomings of the Foundation Aid formula, which is currently undermined by inconsistent local share calculations, arbitrary adjustments, and outdated data.
Key Data
$69 billion
— spent on public education in New York State in school year 2016-2017.
$9 billion
— more than necessary to fund a sound basic education in New York State.
$6.6 billion
— of State aid provided to more than 600 districts that is greater than what is needed for them to fund a sound basic education.
$20 billion
— increase in revenues to school districts between school year 2006-2007 and 2016-2017.
$956 million
— increase in state aid proposed in the Governor’s Executive Budget.
$338 million
— increase in Foundation Aid proposed in the Governor’s Executive Budget.
The New York State Executive Budget proposes increasing school aid by $769 million to a total of $26.4 billion, a growth rate that exceeds the state's established school aid cap. While the proposal directs more funding toward high-need districts, it fails to account for enrollment changes and relies on a flawed Foundation Aid formula that requires comprehensive reform to ensure resources are distributed equitably.
Recommendations related to NYC Department of Education Budget
The State should limit school aid growth and make reforms to the distribution of aid to better direct it to the neediest districts.
The State should reform the Foundation Aid formula to address the flaws that distort the total distribution of $17.5 billion in aid, rather than layering additional funding on top of the existing distribution.
The State should distribute expense-based aid funds through a revised Foundation Aid formula to encourage districts to allocate funds to the highest priority needs, rather than simply limiting growth in those aid components.
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 school aid proposed in the New York State Fiscal Year 2018-2019 Executive Budget.
$26.4 billion
— Total amount of school aid proposed in the New York State Fiscal Year 2018-2019 Executive Budget.
$651 million
— Increase in formula-based school aid proposed in the budget.
$25.8 billion
— Total amount of formula-based school aid proposed in the budget.
$338 million
— Increase in Foundation Aid dedicated to school districts.
$17.5 billion
— Total amount of Foundation Aid proposed in the budget.
New York City's capital spending on education has significantly expanded, with school facilities' value quadrupling since 2002, yet the city lacks a comprehensive, transparent strategy for maintaining these assets or prioritizing projects. The next administration should implement a "fix it first" approach, prioritizing state of good repair projects and adopting rigorous cost-benefit analyses to ensure capital investments are fiscally responsible and effective.
Recommendations related to NYC Department of Education Budget
The next administration should take four steps to improve the city’s asset management and capital planning processes, starting with enacting clear guidelines or directives for performing routine maintenance and regular replacement of assets.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The needs assessment should be used to develop a plan to achieve state of good repair.
To devise the remainder of the plan, the City should adopt a 'fix it first' strategy, in which state of good repair projects receive priority at each agency.
The City should also renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
Key Data
$53.3 billion
— Total capital spending by the Departments of Education (DOE) and Environmental Protection (DEP) between fiscal years 2003 and 2014.
167
— Number of new schools and additions created since fiscal year 2003.
126,726
— Cumulative number of new seats created in schools since fiscal year 2003.
65 percent
— Share of reported maintenance needs funded by the Department of Education in fiscal year 2014.
$19.8 billion
— Total value of school facilities as of fiscal year 2013.
In 2012, New York maintained its position as the highest per-pupil spender on public education in the nation, with an average of $19,552 per student compared to the national average of $10,608. This spending disparity is largely driven by high costs for teacher compensation and fringe benefits, with New York City specifically averaging $20,226 per pupil and facing the highest regional fringe benefit costs at $5,102 per student.
Key Data
$19,552
— The average per-pupil spending on public elementary-secondary education in New York in 2012.
$10,608
— The national average per-pupil spending on public elementary-secondary education in 2012.
$20,226
— The average per-pupil spending in New York City in 2012.
$5,102
— The average per-pupil cost for instructional employee fringe benefits in New York City.
6.8%
— The rate at which the cost of fringe benefits for teachers rose from 2011 to 2012.
$8,313
— The average per-pupil cost for instructional salaries and wages in New York.
New York State leads the nation in public school spending, with per pupil expenditures reaching $19,076 in fiscal year 2011, a figure 81% higher than the national average. This high spending is driven largely by instructional salaries and fringe benefits, with New York City specifically spending $4,919 per student on instructional staff benefits alone.
Key Data
$19,076
— Per pupil spending in New York in fiscal year 2011.
81%
— Amount by which New York's per pupil spending exceeded the U.S. average.
$8,196
— Average per pupil spending on instructional salaries in New York.
$3,962
— Per pupil spending on fringe benefits for instructional employees in New York.
$19,770
— Per pupil spending in New York City.
$4,919
— Per pupil spending on fringe benefits for instructional staff in New York City.
New York's public education system spends $18,825 per pupil annually, yet student achievement lags behind national averages, with graduation rates ranking 39th in the nation. To improve outcomes without increasing funding, the state should reform aid formulas, cap health insurance contributions, and reduce burdensome special education mandates.
Recommendations related to NYC Department of Education Budget
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 should eliminate ineffective special education mandates by passing the pending bill that authorizes multiple mandate relief measures already approved by the State Education Department.
School districts should reallocate responsibility for employee and retiree health insurance premium costs to match those of the State of New York for its employees.
School leaders and legislators should focus on retargeting the dollars already committed rather than pursuing even more funding for schools in the upcoming year's state budget.
Key Data
$60 billion
— Public education in New York is a $60 billion enterprise.
$18,825
— Per pupil spending is $18,825 annually.
73.5 percent
— New York's graduation rate ranks 39th in the nation at 73.5 percent.
$4.7 billion
— School districts in New York State, including New York City, spend $4.7 billion on health insurance for employees and retirees.
$500 million
— If New York City and school districts across the state changed their health insurance premium-sharing arrangements to match those of the State of New York for its employees, annual savings would exceed $500 million.
$11.4 billion
— In the decade ending in 2010, statewide special education spending increased 88 percent to $11.4 billion.
The fiscal year 2011 budget gap was largely addressed through temporary revenue shifts and federal grants, allowing the Department of Education to avoid headcount reductions for the year. However, the fiscal year 2012 plan projects a $1 billion gap-closing program that includes $350 million in cuts to education and significant headcount reductions.
Key Data
$350 million
— Cuts to education alone in the fiscal year 2012 gap-closing program.
$7.6 billion
— City-funded education budget for fiscal year 2011.
$19.1 billion
— Total education budget for fiscal year 2011 before cuts.
4,000
— Teacher positions sustained until fiscal year 2012 using federal education jobs bill funding.
The New York City Department of Education requires codified oversight by the Comptroller and full integration of its financial systems with the City’s Financial Management System to ensure fiscal transparency. Currently, disparate data categorization between the Department's internal systems and citywide oversight tools hinders the ability of external entities to effectively monitor budget data and procurement.
Recommendations related to NYC Department of Education Budget
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.
2006
— The year since which the Department of Education has been working to integrate its internal financial systems with the City’s Financial Management System.
New York City public schools face significant overcrowding, but rather than relying on expensive and slow new construction, the city should implement rezoning and year-round education to better utilize existing facilities. These strategies could provide sufficient capacity for all students, including those in pre-kindergarten and smaller classes, at a lower cost and in a more timely manner than the capital program proposed by the Campaign for Fiscal Equity.
Recommendations related to NYC Department of Education Budget
The city should adopt new zoning policies to alleviate crowding by better balancing capacity and demand across school districts.
The city should implement year-round education (YRE) to increase school capacity by staggering student schedules throughout the year.
The city should prioritize reconfiguring grades within schools, such as shifting ninth-grade students to middle schools, to address high school overcrowding.
The city should avoid avoidable new construction and instead focus on using existing facilities more wisely to provide children with a sound basic education.
The city should ensure air conditioning is installed throughout the school system if instruction is extended through the summer months.
Key Data
$14.7 billion
— Total capital needs identified to provide New York City students with the facilities needed for a sound basic education.
$12.3 billion
— Amount of the total capital needs allocated for new construction.
72,000
— Surplus capacity of school seats available citywide.
136,430
— Number of unused seats at under-utilized schools.
64,231
— Number of excess students enrolled at crowded schools.
1,268,574
— Total capacity available for enrollment after implementing year-round education and rezoning.
New York State can achieve significant savings in its education budget by eliminating poorly targeted state aid to wealthy districts and reallocating teacher time currently spent on non-instructional activities. Additionally, consolidating small school districts and capping administrative expenses would further reduce costs, allowing funds to be redirected toward providing a sound basic education where it is most needed.
Recommendations related to NYC Department of Education Budget
The State should eliminate or redistribute aid that is poorly targeted to wealthy school districts that generate significant local revenue at low tax rates.
The State should require a minimum tax effort to generate additional local tax funds in some districts and reduce the need for State aid.
The Department of Education should reduce combined preparation and administrative periods for junior high and high school teachers from 10 to five per week.
The Department of Education should reduce preparation periods for elementary school teachers from five to three per week.
The Department of Education should eliminate sabbatical leaves for travel and study.
The Department of Education should eliminate subsidized time for union activities.
The State should implement penalties or mandates to ensure school district consolidation occurs.
The State should set caps on administrative expenses by dollar cost per pupil and/or by administrative costs as a share of total costs.
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 related to teacher time and small school district administrative costs.
$1.5 billion
— Amount of excess state aid received by 450 districts above the gap between what they can raise locally and the median spending level.
$350,000,000
— Savings generated by reallocating teacher time to instructional activities.
$100 million
— Annual savings achievable through the consolidation of small school districts.
$26.0 million
— Annual savings from applying caps on administrative costs based on both per pupil spending and share of total costs.
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