School capital refers to the funding, construction, and management of physical infrastructure for New York’s public education system. This page covers CBC’s work on school capital plans, the efficient use of existing building capacity, strategies for addressing student overcrowding, school siting processes, and the allocation of state and city education infrastructure funding.
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..
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 to improve school aid formulas.
Calculations of local fiscal capacity should account for localities’ other spending obligations, such as State mandates like Medicaid, to better target school aid based on need.
Indices of need and regional cost should be updated regularly and be sufficiently granular to capture variation to ensure more accurate school aid distribution.
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.
Expense-based aids and the STAR program should be distributed proportionally to Foundation Aid to ensure they are better targeted based on student needs and local wealth.
Key Data
As of August 2024, Building and Transportation Aid are the two largest expense-based aid categories, totaling nearly $6 billion.
In July 2024, the CBC noted that education funding comprises nearly 30 percent of State Operating Funds spending, and the State's structural budget gap is projected to exceed $16 billion by fiscal year 2028.
In July 2024, the CBC reported that the State provided $2.8 billion to districts that fully fund a sound basic education (SBE) before receiving a single dollar from the State.
In September 2019, the CBC calculated that educating an average NYC elementary school class cost $561,246 in 2017, a figure that includes teacher compensation, support personnel, and facility debt service.
In December 2018, the CBC noted that the proposed Department of Education (DOE) Capital Plan for fiscal years 2020-2024 was $17 billion, including $8.76 billion to fund 57,000 new K-12 seats.
New York State's school aid formulas, including the Foundation Aid and STAR programs, currently fail to accurately target funding based on local fiscal capacity and student need, resulting in inequitable distributions. Reforming these formulas to account for local spending obligations and distributing expense-based aids proportionally to Foundation Aid would better align resources with actual district requirements.
Recommendations related to School Capital
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 to improve school aid formulas.
Calculations of local fiscal capacity should account for localities’ other spending obligations, such as State mandates like Medicaid, to better target school aid based on need.
Indices of need and regional cost should be updated regularly and be sufficiently granular to capture variation to ensure more accurate school aid distribution.
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.
Expense-based aids and the STAR program should be distributed proportionally to Foundation Aid to ensure they are better targeted based on student needs and local wealth.
Key Data
$6 billion
— Total of Building and Transportation Aid categories.
$3.3 billion
— Amount of education funding shifted from locally-raised property tax revenue to the State via the STAR program.
$447 million
— Amount allocated in Library, Textbook, Software, and High Tax Aids in the 2024-25 school year.
$135 million
— Additional funds directed to lower-wealth districts if aids were distributed proportional to Foundation Aid.
$8 billion
— Costs of the State-run Medicaid program shifted to counties.
New York State's school aid formulas, including Foundation Aid and various expense-based aids, require reform to better align funding with student needs and local fiscal capacity. Current mechanisms, such as the hold harmless provision and regressive tax relief programs, often direct resources to wealthier districts rather than those with the greatest need.
Recommendations related to School Capital
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, which should be better measured.
The State should update district poverty estimates and regional cost measures for a more accurate assessment of need.
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 eliminate High Tax aid, which is fixed and not tied to an educational expense.
The State should eliminate the School Tax Relief (STAR) program to better allocate State resources to where needed most.
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 amount the State's structural budget gap will exceed 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 a single dollar from the State.
$10.4 billion
— Total funding for expense-based aids, including building construction and improvement, in the current year.
$20.6 million
— Additional funding provided for expense-based aids due to arbitrary floors, with 81 percent flowing to the wealthiest 40 percent of school districts.
$3.3 billion
— Estimated cost of the School Tax Relief (STAR) program in the coming year.
Lorraine Grillo is the First Deputy Mayor of the City of New York, appointed by Mayor Eric Adams. Grillo's direct reports include Deputy Mayors for Economic and Workforce Development, Operations, Strategic Initiatives, and Human Services, as well as the Office of Management and Budget, Department of Finance, Chief Housing Officer,…
98,000 is the number of seats for public school students constructed by the NYC School Construction Authority - about twice as many as in Yankee Stadium. Riley Edwards discusses alternative strategies for solving the crowding problem.
New York City's proposed $17 billion school capital plan relies too heavily on new construction despite a citywide surplus of 55,000 seats, failing to address the specific shortage of 10,400 elementary school seats. Instead of building more, the city should implement operational strategies like rezoning, grade adjustments, and better space utilization to manage crowding where it actually exists.
Recommendations related to School Capital
The City should implement operational strategies that alter the use of space and redirect students to facilities with capacity rather than relying solely on new construction.
The Department of Education should conduct more aggressive school rezonings that alter “catchment zones” to balance enrollment across buildings.
The Department of Education should site programs that attract many out-of-zone applicants, such as bilingual schools and gifted and talented programs, in underutilized buildings to attract enrollment away from crowded schools.
The proposed five-year capital plan should be revised to focus on elementary schools, where crowding is highest.
The City should limit new capacity to those neighborhoods where operational strategies are not sufficient to address crowding.
Key Data
$17 billion
— Proposed Department of Education Capital Plan for fiscal years 2020-2024.
55,000
— Citywide surplus of seats in Department of Education school buildings as of the 2016-2017 school year.
10,400
— Number of fewer seats than students in elementary schools citywide.
57 percent
— Portion of elementary schools that exceed their capacity.
21,500
— Shortage of seats in Queens, the most acute shortage in the city.
$9.1 billion
— Amount spent since 2005 to construct more than 98,000 seats.
The proposed New York State budget increases school aid by $769 million, exceeding the established cap, while introducing new formulas for Foundation Aid distribution that fail to account for enrollment changes. Reforms are needed to better target funding to high-need districts and to restructure expense-based aids like Building Aid to prioritize essential educational needs.
Recommendations related to School Capital
The State should distribute funds from expense-based aids, such as Building Aid, 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 address the flaws that distort the total distribution of $17.5 billion in Foundation Aid.
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
$177 million
— The amount by which Building Aid is projected to grow in school year 2018-2019.
$119 million
— The amount the State would save in school year 2018-2019 if a 2 percent growth limit were imposed on Building Aid.
$769 million
— The total increase in school aid proposed in the New York State Fiscal Year 2018-2019 Executive Budget.
New York City's $15.5 billion school capital plan allocates significant funding for system expansion despite widespread unused capacity in many school buildings. To improve efficiency, the city should prioritize shifting students to underutilized facilities and target new construction specifically toward areas with the highest overcrowding rather than building in districts with declining enrollment.
Recommendations related to School Capital
The city should maximize the use of existing capacity by shifting students to different schools or moving schools to different buildings to alleviate crowding.
The city should target new capacity to areas with the highest need rather than constructing new seats in districts that are currently under capacity and projected to decline in enrollment.
The city should alter school zone boundaries to match student enrollment to space across districts, which can save unnecessary capital expenditure.
The city should prioritize new school sites in already-crowded areas instead of constructing new capacity where it is less needed.
The city should avoid constructing new capacity without redistributing students from crowded schools, as this represents an inefficient use of capital funds.
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 the 785 public school buildings identified as overcrowded.
46,000
— Total number of seats of extra capacity available citywide.
$251 million
— Cost to fund more than 2,500 new seats in District 13, despite current enrollment being at 85 percent of capacity.
46 percent
— Percentage of school buildings that have unused capacity.
681
— Number of schools that had unused space, totaling 151,148 available seats.
New York City's school crowding is a localized issue rather than a citywide crisis, as many buildings currently hold excess capacity while others face significant shortages. Rather than relying solely on new construction, the city should prioritize space management solutions and student reallocation to address crowding more efficiently and avoid unnecessary capital expenditures.
Recommendations related to School Capital
Policymakers should prioritize space management solutions that take advantage of existing unused space to adequately meet the needs of the city's public school students.
The city should shift students to different schools or move schools to different buildings to address crowding faster and without unnecessary capital expenditure.
Policymakers should utilize a clearer understanding of the extent of crowding, where it occurs, and whom it affects to guide solutions that best utilize existing capacity.
Key Data
51%
— of students attend schools that are over capacity.
52,000
— seats of extra capacity exist citywide.
161,336
— unfilled seats are available in school buildings.
53%
— of identified need is funded by the 2015-2019 Department of Education Capital Plan.
38,463
— needed seats are left unfunded by the Capital Plan.
24,000
— seats represent the total capacity shortfall in elementary school buildings.
The proposed $2 billion Smart Schools Bond Act is ill-conceived because it lacks a statewide needs assessment and prioritizes technology purchases over more critical infrastructure needs. With New York already approaching its statutory debt cap of 4 percent of personal income, the state should reserve its limited borrowing capacity for high-priority capital projects rather than funding potentially ineffective technology programs.
Recommendations related to School Capital
New York State is approaching its statutory debt cap (4 percent of personal income) and should prioritize its capital spending.
Other high priority capital needs that have a proven return on investment should take precedence.
Any list of capital needs to be funded with state-supported debt should be established through the new statewide capital planning process.
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 to fund school technology and infrastructure.
4 percent
— The statutory debt cap limit on state personal income for debt issued after April 1, 2000.
$174 billion
— The total capital needs identified in the state's 10-Year Capital Plan for 48 state agencies and authorities.
$89 billion
— The estimated state and local infrastructure funding shortfall over the next 20 years.
$19,552
— The average per-pupil spending in New York in school year 2012, the highest of any state.
$2,899
— The cost of repaying the state's outstanding debt per capita as of fiscal year 2011-12.
Settlement funds from financial institutions could be utilized to establish a revolving-loan fund for school districts, potentially generating $160 million annually for computer equipment investments. This initiative would effectively double current annual spending on educational technology, providing a sustainable way to modernize school resources.
Recommendations related to School Capital
The state should establish a revolving-loan fund to enable school districts to invest in computer equipment, which could provide $160 million annually.
Key Data
$4 billion
— The proposed size of a revolving-loan fund for school districts to invest in computer equipment.
4%
— The annual interest rate the proposed revolving-loan fund would earn.
$160 million
— The amount of annual funding the proposed revolving-loan fund could provide for school computer equipment.
Between fiscal years 2002 and 2009, New York City invested heavily in school infrastructure, constructing approximately 100 new schools and facilities to create 95,800 new seats while significantly improving the condition of existing buildings. Despite these investments, crowding remains a persistent issue in 38 percent of high schools, 28 percent of elementary schools, and 12 percent of intermediate schools.
Key Data
$13.5 billion
— Value of primary and secondary school facilities in fiscal year 2009.
95,800
— Estimated new seats produced between fiscal years 2002 and 2009.
38 percent
— Percentage of high schools experiencing persistent crowding.
28 percent
— Percentage of elementary schools experiencing persistent crowding.
12 percent
— Percentage of intermediate schools experiencing persistent crowding.
163
— Number of hazardous building violations in 2009, down from 2,200 in 2002.
New York City's public school buildings, which number 1,040 and are valued at approximately $11.8 billion, are currently excluded from the PlaNYC capital planning initiative. The report argues that these schools, along with other critical infrastructure, should be integrated into a more comprehensive, long-term capital planning process to ensure they are maintained in a state of good repair.
Recommendations related to School Capital
The strategic approach should be expanded to encompass other agencies and capital assets, specifically including the school system which is currently omitted from PlaNYC.
The City should develop a systematic plan for bringing all City-owned assets, including public school buildings, to a state of good repair.
The City should place all its capital assets, including school facilities, on regular replacement cycles according to their useful lives.
Expansion projects, such as those for new school construction, should be clearly explained and justified with data that demonstrates economic and other benefits.
Key Data
1,040
— Number of public school buildings in New York City.
$11.8 billion
— Estimated value of New York City's 1,040 public school buildings.
$83 million
— Value of capital assets associated with the six community colleges of the City University of New York.
New York State must address court-mandated funding for public schools by balancing the need for revenue with the state's economic competitiveness. Strategies include eliminating system inefficiencies, expanding gambling, and broadening the tax base, alongside structural reforms like reallocating aid and better utilizing existing school capacity.
Recommendations related to School Capital
The State should eliminate system inefficiencies, such as consolidating small school districts and reallocating aid from wealthy districts, to generate at least $1.2 billion annually.
New York should expand gambling activities to generate an additional $2 billion in revenue, which avoids increasing the overall tax burden.
The State should broaden the tax base by enforcing sales tax on remote purchases, extending sales tax to professional services, and revising the corporate income tax to raise up to $2.6 billion.
The State, rather than local school districts, should become the primary source of new funding to alleviate inequities in spending caused by the existing system.
Policymakers should rework school aid formulas and ensure the full use of school capacity as a first step in reform before infusing the system with new resources.
Key Data
$4.7 billion
— Amount ordered by the State Supreme Court for operating aid for New York City public schools.
$9.2 billion
— Amount ordered by the State Supreme Court for capital improvements for New York City public schools.
$1.2 billion
— Potential annual savings from eliminating inefficiencies in the education system.
$2 billion
— Potential revenue generated by expanding gambling activities.
$2.6 billion
— Potential revenue raised by broadening the tax base through sales and corporate tax revisions.
$10,665
— Average per pupil spending in New York State after adjusting for regional cost differences.
New York City faces a significant challenge in providing adequate school facilities, with estimates suggesting that billions of dollars in capital costs are avoidable through more efficient use of existing space. By implementing rezoning and year-round education schedules, the city could accommodate necessary enrollment growth and class size reductions without relying solely on expensive new construction.
Recommendations related to School Capital
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.
The classroom space requirements for a sound basic education should be met through a combination of two measures – redistricting of existing schools and operating existing schools on a year-round schedule.
Teachers should be given financial incentives for better performance.
The managerial discretion of principals should be expanded to allow them to select teachers for given posts from among multiple candidates.
Key Data
$15 billion
— Total estimated statewide one-time capital expenses needed to upgrade and expand school facilities.
$12 billion
— Amount of capital expenses that are avoidable through strategies like rezoning and year-round education.
$3 billion
— Minimum amount of unavoidable capital costs for school facilities.
$200 million
— Annual debt service required if capital costs are financed by issuing bonds.
$14.7 billion
— Total capital needs in 2003 dollars to provide New York City students with facilities required for a sound basic education.
$12.3 billion
— Portion of the $14.7 billion capital need allocated for new construction.
No results for your current filters. Manually edit your filters, or
clear the filters.
Share Feedback
Give a star rating, write a comment of at least 10 words, or both.
