A Sound Basic Education in New York refers to the constitutionally guaranteed level of public school funding required to provide every student with the resources necessary for a quality education. This page covers CBC’s work on Foundation Aid reform, the reallocation of School Tax Relief (STAR) program funds, the elimination of hold harmless provisions, the targeting of expense-based aids, and the implementation of district performance management systems.
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 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 quickly phase-out the hold harmless provision to align Foundation Aid with district enrollment.
The State should remove arbitrary floors and ceilings that distort the funding distribution of Foundation Aid and expense-based aid categories.
The State should eliminate the STAR program to better allocate State resources to where they are needed most.
Key Data
An August 2024 policy brief estimated that in the 2024-25 school year, school districts in the bottom three wealth deciles receive $501 million in School Tax Relief (STAR) aid, while districts in the top three wealth deciles receive approximately $942 million.
According to an August 2024 report, New York's statewide student transportation expenditures totaled $1,805 per student in 2022, which was the highest of any state and nearly triple the U.S. average.
A September 2023 policy brief reported that total school spending in New York reached $85.8 billion, or $35,095 per pupil, for the 2023-24 school year.
In the 2023-24 school year, New York State provided $2.8 billion to 152 school districts that already fully funded a Sound Basic Education (SBE) with local and regular federal resources.
A September 2023 analysis found that only 5 school districts statewide lacked adequate resources to provide a Sound Basic Education (SBE), with a total revenue shortfall of $9.6 million.
New York State's school aid funding formulas, including Foundation Aid, expense-based aids, and the School Tax Relief (STAR) program, are flawed and fail to effectively distribute resources based on student need and local capacity. Reforming these formulas to better account for local circumstances and reallocating funds to lower-wealth districts would more equitably provide a Sound Basic Education.
Recommendations related to Sound Basic Education (SBE)
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 quickly phase-out the hold harmless provision to align Foundation Aid with district enrollment.
The State should remove arbitrary floors and ceilings that distort the funding distribution of Foundation Aid and expense-based aid categories.
The State should eliminate the STAR program to better allocate State resources to where they are needed most.
Key Data
$3.3 billion
— Annual School Tax Relief (STAR) program funding that could be reallocated proportional to district share of Foundation Aid.
$1,805 per student
— Statewide student transportation expenditures in 2022, which is the highest of any state.
$447 million
— Total funding for Library, Textbook, Software, and High Tax Aid in the 2024-25 school year.
$135 million
— Amount of funding that would shift to the 268 districts with the lowest wealth if expense-based aids were reallocated proportional to the Foundation Aid formula.
$501 million
— Current STAR aid received by the 201 lowest-wealth districts.
$1 billion
— Projected STAR aid for the 201 lowest-wealth districts if reallocated proportional to Foundation Aid.
New York's education funding system, which accounts for nearly 30 percent of state operating funds, requires reform to ensure fiscal sustainability and equitable distribution of the $38.6 billion in aid. By eliminating outdated provisions like "hold harmless" and the $3 billion School Tax Relief (STAR) program, the state can better direct resources to districts with the greatest need rather than subsidizing wealthy areas.
Recommendations related to Sound Basic Education (SBE)
Quickly phase out the hold harmless provision to align Foundation Aid with district enrollment and wealth.
Revise the expected local contribution to be the higher of the district’s actual contribution, or the district’s fiscal capacity.
Update district poverty estimates and regional cost measures for a more accurate assessment of need.
Reassess arbitrary floors and ceilings in formulas to ensure they are limited to extreme situations.
Allocate library, textbook, and software aids based on wealth by modifying the formula or folding the funding into Foundation Aid.
Eliminate High Tax Aid to stop providing more aid per student to wealthy districts than below-average-wealth districts.
Eliminate the School Tax Relief (STAR) program to better allocate State resources to where needed most.
Key Data
30%
— Education funding comprises nearly 30 percent of State Operating Funds spending.
$16 billion
— New York faces a $16 billion structural budget gap, necessitating fiscally sustainable education spending.
$38.6 billion
— The State allocates $38.6 billion of education aid that must be used wisely and appropriately.
$2 billion
— Over $2 billion of State aid is sent every year to districts that already spend enough local resources to provide a sound basic education.
$224 million
— Library, textbook, and software aids total $224 million and should be better allocated via Foundation Aid or wealth adjustments.
$223 million
— High Tax Aid, which should be eliminated, is a funding stream totaling $223 million.
New York State's school spending has reached a record $85.8 billion, or $35,095 per pupil, yet the state continues to direct $2.8 billion in aid to 152 districts that already possess sufficient local and federal resources to provide a Sound Basic Education. To address projected budget gaps of up to $22 billion by fiscal year 2028, the state should reallocate these funds to high-need districts and implement a comprehensive performance management system to ensure spending drives improved educational outcomes.
Recommendations related to Sound Basic Education (SBE)
The State should reduce or reallocate aid to districts that already fund a Sound Basic Education to help stabilize the State’s ongoing finances and better target aid to high-need districts.
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.
To balance the budget, the State should rein-in spending growth by addressing poorly targeted school aid as a reasonable option for spending control.
The State should pursue cost savings by freezing or reducing aids to districts that already self-fund a Sound Basic Education, including by distributing expense-based aids based on need.
Key Data
$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.
$11.4 billion
— Total statewide funding required to provide a Sound Basic Education.
$9.6 million
— Total revenue shortfall for the five districts statewide that lack adequate resources to provide a Sound Basic Education.
$85.8 billion
— Total school spending in New York State for the 2023-24 school year.
$35,095
— Total school spending per pupil in New York State for the 2023-24 school year.
$37.4 billion
— Total State school aid for the 2023-24 school year.
New York State directs $2.8 billion in aid to 152 school districts that already possess sufficient local and federal resources to fully fund a Sound Basic Education, while providing an additional $8.6 billion to other districts beyond the required SBE level. Despite this significant state investment, five districts face a combined $9.6 million shortfall in meeting the calculated cost of a Sound Basic Education.
Key Data
$2.8 billion
— State aid directed to 152 districts that fully support a Sound Basic Education (SBE) with local and regular federal funding.
$8.6 billion
— Additional State aid that goes to other districts in excess of the SBE level.
$9.6 million
— SBE shortfall for five districts where per-pupil funding is negative relative to SBE needs.
$11.4 billion
— Total for all other districts’ State aid in excess of an SBE.
8.8 percent
— Increase in State school aid from $34.4 billion to $37.4 billion.
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
New York is phasing in a 32% increase in education aid to ensure a sound basic education for all students, but the current allocation model directs over $3 billion annually to wealthy districts that can already afford these costs. To improve equity and fiscal stability, the state should prioritize aid for high-need districts and reform reimbursement formulas that currently favor construction and transportation spending over student need.
Recommendations related to Sound Basic Education (SBE)
The state should better target aid to high-need districts, including money that currently reimburses districts based on transportation and construction spending rather than student need.
The state should reevaluate assistance to wealthy districts, particularly those that receive over $3 billion annually despite already self-funding a sound basic education.
Key Data
32%
— The percentage of education aid increase that the state began phasing in during 2021.
$3 Billion
— The amount of annual funding received by wealthy districts that already self-fund a sound basic education.
New York State school aid increased by 6.7 percent to $34.4 billion, with per-pupil funding rising 9.4 percent despite declining enrollment. Of this total, $3.1 billion is allocated to wealthy districts capable of funding a Sound Basic Education independently, while an additional $10.4 billion is distributed to districts beyond the required SBE level.
Key Data
$3.1 billion
— State aid directed to 176 wealthy districts that can fully support a Sound Basic Education (SBE) with local and federal funding.
$10.4 billion
— State aid provided to other districts in excess of the Sound Basic Education (SBE) level.
6.7 percent
— Increase in State school aid from $32.2 billion to $34.4 billion.
9.4 percent
— Increase in per-pupil State aid amid declining enrollment.
New York State provides billions of dollars in school aid to districts that already have sufficient local and federal resources to meet the constitutionally guaranteed Sound Basic Education (SBE) standard. To improve fiscal stability and educational outcomes, the state should reform its funding formulas to better target high-need districts and implement a robust performance management system to hold schools accountable.
Recommendations related to Sound Basic Education (SBE)
The State should stop increasing aid to wealthy districts that fund an SBE 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 an SBE.
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 an SBE.
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
$3.1 billion
— Amount of state aid directed to 176 districts that already fund an SBE with local and regular federal resources.
$10.5 billion
— Amount of state aid provided to districts in amounts exceeding what is needed to fund an SBE.
$13.6 billion
— Total amount of state aid sent across all districts above the level needed to fund an SBE.
$14.7 million
— The funding shortfall for the only four districts that remain below the level needed to provide an SBE.
$34.4 billion
— Total state school aid for the school year.
$81.1 billion
— Total spending by school districts in New York for the school year.
New York State is set to increase school aid by $2.9 billion alongside $11.4 billion in federal pandemic aid, raising per-pupil spending to $32,352, which is roughly double the national average. To ensure these funds drive results and stabilize long-term finances, the State should target aid to high-need districts and implement robust performance measurement systems, especially since 168 wealthy districts already receive enough local and federal funding to finance a sound basic education without State assistance.
Recommendations related to Sound Basic Education (SBE)
To address the greatest educational needs and stabilize the State’s finances over the long term, the State should focus funding on districts with the greatest need, and reduce aid and aid increases to wealthy districts.
Performance and fiscal stability can be addressed by directing school aid to those districts most in need, and by restraining increases to wealthy districts.
To increase the likelihood that students benefit from this funding increase, the State should set goals, track performance, evaluate initiatives, and adjust programs and spending as necessary going forward.
The Legislature, Division of the Budget, State Education Department, and the Comptroller’s office should work together to ensure that the spending supported by these funding sources is recorded in sufficient detail to evaluate their uses and the effectiveness of this massive spending increase.
Key Data
168
— Districts that receive sufficient local and recurring federal funding to finance a sound basic education before receiving any State aid.
$2.5 billion
— State aid that will be received this school year by 168 districts that already receive sufficient funding to finance a sound basic education.
$32,352
— Total per pupil spending this school year, which is roughly double the national average.
$11.4 billion
— One-time federal pandemic aid available to schools over four years.
$2.9 billion
— Increase in State school aid from school year 2020-21 to 2021-22.
$3.5 billion
— Projected fiscal cliff leaving the State once extraordinary federal aid is depleted.
New York State's total education funding for the 2021-22 school year reaches $77.9 billion, which exceeds the amount required to provide every student a sound basic education by $13.2 billion. Despite this historic influx of state and federal aid, the state must implement stronger management and accountability processes to ensure these funds effectively address learning loss and improve student outcomes.
Recommendations related to Sound Basic Education (SBE)
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.
The State should consider significantly restraining the new funds it provides to wealthy districts in light of future budget pressures.
State leaders should work with districts to set measurable goals to address the disruptions and improve learning outcomes going forward.
The State should be tracking and publicly reporting key data and holding districts accountable for addressing the pandemic’s negative impacts.
The State should enhance its monitoring and accountability processes to ensure aid is delivering results for students.
Key Data
$77.9 billion
— Total federal, State, and local resources available for the 2021-22 school year.
$13.2 billion
— Amount by which total statewide funding exceeds the calculated need to provide every student a sound basic education.
$64.7 billion
— Total funding needed to provide every student a sound basic education based on the State aid formula.
$32.5 billion
— Total State school aid for the 2021-22 school year.
$35.9 million
— Combined funding gap faced by six districts to meet their calculated sound basic education need.
New York State should prioritize school aid for districts that lack sufficient local resources to provide a sound basic education, rather than distributing funds to wealthier districts that can already afford it. By incorporating various education aids into a need-based Foundation Aid formula, the state can reduce costs while ensuring all students receive a constitutionally guaranteed education.
Recommendations related to Sound Basic Education (SBE)
The State should focus on first ensuring that all districts have sufficient funds to provide a sound basic education (SBE), and reduce funds to districts that already have sufficient local resources to meet this requirement.
As the State evaluates measures to close the budget gap, it should first ensure that districts that lack sufficient local resources to meet SBE standards receive the necessary funding.
Decreases in funding should first target districts that do not need State aid to fund an SBE.
By incorporating funding from various education aids into a revised Foundation Aid formula, the State can reduce costs and ensure all districts have the necessary revenues to provide an SBE.
The State should revisit how it distributes its school aid dollars by accounting for student need, district wealth, and total district revenues.
Key Data
$8 billion
— Reduction in fiscal year 2021 local assistance spending.
$26.8 billion
— Amount of school aid, representing 38 percent of state local assistance spending.
$1.2 billion
— Amount by which the State Enacted Budget decreased State-funded school aid.
$1.6 billion
— Amount of State aid received by 129 school districts that already raised enough local revenue to fund an SBE in school year 2017-2018.
$237 million
— Total of library, textbook, and software aids that provide the same amount per pupil regardless of student need or district wealth.
$223 million
— Total of High tax aid that provides more aid to wealthier districts.
New York State continues to provide significant school aid to wealthy districts that already possess sufficient local resources to fund a sound basic education, despite spending growth in education aid outpacing inflation. Reallocating these funds to prioritize needy districts would ensure all students receive a sound basic education while curbing unnecessary state spending.
Recommendations related to Sound Basic Education (SBE)
New York State should focus education aid on needy districts to fund fully SBE.
Key Data
$1.6 billion
— Amount in 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 over the amount needed for each district to fund a sound basic education.
3.7 percent
— Average annual increase in education aid between fiscal years 2011 and 2020, which is twice the rate of inflation.
New York State spends $13.6 billion more than necessary to provide a sound basic education, yet the current Foundation Aid formula fails to target resources effectively, leaving 25 districts without sufficient funding while wealthy districts receive excess aid. Reforming the formula to account for actual local wealth, eliminating "hold harmless" provisions, and redirecting aid to high-need districts would ensure all students have the resources required for a sound basic education.
Recommendations related to Sound Basic Education (SBE)
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 to ensure accuracy.
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 an SBE.
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.
$500 million
— The total value of other aid streams that are not based on district need and would be better utilized if channeled into a revised Foundation Aid formula.
$223 million
— The amount of additional State aid specifically targeted to wealthy districts through High Tax Aid.
$18.4 billion
— The amount of Foundation Aid in school year 2019-2020, which accounts for two-thirds of state education aid.
New York State's current school funding formula, known as Foundation Aid, is flawed because it relies on outdated data and political compromises that direct excessive aid to wealthy districts while leaving some districts underfunded. Despite a significant increase in total education spending, the state's resources are not effectively targeted to ensure every district can provide a sound basic education.
Recommendations related to Sound Basic Education (SBE)
The state should significantly revamp the Foundation Aid formula and other education aid formulas to properly account for local wealth and actual local funding.
Policymakers should eliminate hold-harmless provisions that prevent aid decreases even when enrollment declines or district wealth increases.
The state should eliminate minimal growth rates to ensure aid is distributed based on actual need rather than automatic increases.
The state should use the most up-to-date data available when calculating aid to ensure resources are directed where they are needed most.
Key Data
$13 billion
— Amount by which New York is on track to spend more than necessary to fund a sound basic education in school year 2019-2020.
$83 million
— Total amount of funding needed to bring the 29 districts that currently lack resources up to the level required for a sound basic education.
$1.9 billion
— Amount the wealthiest decile of districts are on track to spend more than needed to fund a sound basic education in school year 2020.
$20 billion
— Increase in total school district revenues between school year 2006-2007 and 2016-2017.
$18.4 billion
— Portion of the total $27.3 billion in school year 2019-2020 aid allocated to Foundation Aid.
$33,000
— Average amount spent per student by the wealthiest decile of districts.
New York State's Foundation Aid formula, intended to ensure all students receive a sound basic education, currently fails to provide sufficient funding to 29 school districts despite an aggregate state expenditure of over $70 billion. To address this, the state should reform the formula by incorporating current data on local funding and enrollment while eliminating arbitrary aid limitations and poorly targeted programs like High Tax Aid.
Recommendations related to Sound Basic Education (SBE)
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 (SBE) to all students in school year 2020.
$70 billion
— Aggregate amount school districts are on track to spend, even though several will not have enough funding to provide an SBE.
$83 million
— Amount by which 29 school districts are collectively underfunded despite historic State aid increases.
$961 million
— Increase in total formula-based school aid in the enacted Fiscal Year 2020 Budget.
$18.4 billion
— Foundation Aid component of the total $27.3 billion in school year 2019-2020 education aid.
$240 million
— Total annual amount of Library, Textbook, and Software Aids that do not account for district wealth.
The New York State fiscal year 2020 budget agreement increases school aid by $1 billion, which exceeds the amount necessary to ensure every district has the resources 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
$840 million
— The amount by which the $1 billion increase in school aid exceeds what is needed to ensure every district has enough resources to provide a sound basic education.
New York State already provides sufficient funding to meet its constitutional obligation for a sound basic education, with total revenues projected to exceed the necessary amount by $9.4 billion. Instead of broad increases, the state should target a modest $164 million aid increase specifically to the 32 districts currently lacking the resources to provide a sound basic education.
Recommendations related to Sound Basic Education (SBE)
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 circumstance.
New York should direct a state aid increase of just $164 million to the 32 districts that currently lack the resources to provide a sound basic education.
Key Data
$62.6 billion
— Estimate of spending required to provide a sound basic education statewide.
$72 billion
— Projected school district revenues from federal, state, and local sources in 2020.
$9.4 billion
— Amount by which projected revenues exceed the aggregate amount necessary for a sound basic education.
$164 million
— Amount by which 32 districts fall short of the resources needed to provide a sound basic education.
$465 million
— Amount of state aid received by the 10% wealthiest districts in 2018-2019 despite already having sufficient resources.
$20 billion
— Increase in total district funds between school years 2006-2007 and 2016-2017.
New York can ensure all school districts have the resources to provide a sound basic education by targeting $164 million to the 32 currently underfunded districts, rather than increasing total aid by the billions proposed by others. While total school spending is projected to reach $72.0 billion in 2020—exceeding the $62.6 billion required for a sound basic education—current funding formulas fail to adequately direct resources to the districts with the greatest need.
Recommendations related to Sound Basic Education (SBE)
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.
New York should ensure that all districts have the revenues to provide an SBE by directing $164 million to those districts that currently do not have sufficient combined State, local, and federal funds.
Budget negotiations should prioritize this allocation while ensuring any State aid above this amount is targeted to educational needs and balanced with the State’s fiscal realities.
Key Data
$164 million
— The amount of additional aid required 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 school spending exceeds what is necessary to fund a sound basic education.
$956 million
— The increase in school aid proposed by the Governor's Executive Budget.
41 percent
— The growth in education funding between the 2006-2007 and 2016-2017 school years.
New York State currently spends $9 billion more than necessary to provide a sound basic education, yet the distribution of aid remains inefficient due to a flawed Foundation Aid formula. While the Governor’s budget proposes a $956 million increase in state aid, the state should prioritize targeting these funds to the fewer than 35 districts that actually lack the resources to meet constitutional requirements.
Recommendations related to Sound Basic Education (SBE)
The State should target any increase in aid to those districts that need it most.
The State should reform the Foundation Aid formula, which is currently undermined by the use of inconsistent local share calculations, arbitrary adjustments, and outdated data.
Key Data
$9 billion
— The amount by which New York education spending exceeds what is necessary to fund a sound basic education.
$6.6 billion
— The 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 funding needed to bring underfunded districts to the level required for a sound basic education.
$956 million
— The total increase in state aid proposed in the Governor’s Executive Budget.
$338 million
— The increase in Foundation Aid included in the Governor’s Executive Budget.
New York's Foundation Aid formula, intended to ensure a sound basic education, suffers from significant flaws like outdated demographic data and arbitrary funding floors that disproportionately benefit wealthy districts. Reforming this formula by streamlining calculations and removing guaranteed increases would allow the state to better target aid to poorer districts and fully fund educational needs with existing resources.
Recommendations related to Sound Basic Education (SBE)
Fixing the existing Foundation Aid formula would require streamlining the local share calculation.
The state should repeal arbitrary floors and ceilings within the Foundation Aid formula.
The state must update demographic data regularly to ensure aid reflects current student needs.
Policymakers should repeal any guaranteed amounts or increases that prevent equitable distribution.
New York’s leaders should direct state aid where it is needed most by students to fully fund a sound basic education.
Key Data
$26.4 billion
— Executive budget school aid proposal for the 2018-2019 school year.
$769 million
— Increase in the executive budget school aid proposal for the 2018-2019 school year.
$338 million
— Increase in Foundation Aid for the 2018-2019 school year.
$17.5 billion
— Total Foundation Aid amount for the 2018-2019 school year.
$2 billion
— Amount advocates are calling for as an increase in Foundation Aid.
The 2017-2018 state budget increased school aid by $1.1 billion but failed to reform the Foundation Aid formula, which continues to distribute funds inequitably by favoring wealthier districts over those with higher needs. Comprehensive modifications to the formula are necessary to ensure all students receive the resources required for a sound basic education without excessive state spending.
Recommendations related to Sound Basic Education (SBE)
The Foundation Aid formula should be reformed to ensure that regardless of a district’s wealth, students receive the resources necessary to achieve a sound basic education.
The state should implement more comprehensive modifications to the Foundation Aid formula to adequately fund education in all districts without excessive state spending.
The state should eliminate provisions that drive aid to wealthy districts that do not need the funds, such as guaranteed minimum increases.
Key Data
$25.8 billion
— Total school aid authorized in the Enacted State Budget for Fiscal Year 2017-2018.
$2.8 billion
— Amount of funding that would have been directed toward low-wealth, high-need districts under the proposed formula reforms.
$130 million
— Total sum of 'Additional Increases' provided to 507 school districts in the enacted budget.
$1.1 billion
— Increase in school aid over the previous year.
$118 million
— Total potential savings for state taxpayers had the proposed formula reforms been adopted.
$17 billion
— Total amount of Foundation Aid distributed in the budget.
New York's current school aid formula is flawed, relying on outdated data and arbitrary adjustments that misallocate resources rather than targeting them to the districts with the greatest need. Reforming the formula to use a more equitable local share calculation and updated poverty measures would allow the state to support a sound basic education for all students with a much smaller increase in funding than the $3.8 billion requested by advocates.
Recommendations related to Sound Basic Education (SBE)
The state should establish a more equitable basis for setting the expected local funding by using a single method that applies a uniform local tax factor and adjusts only for the local Medicaid financing burden.
Policymakers should eliminate arbitrary adjustments such as hold harmless provisions, phase-in percentages, and caps in the current formula.
The state should increase the additional resources allocated to needs of students in poverty by raising the weighting for poverty from 0.65 to 0.75 in the calculation of the Pupil Needs Index.
Key Data
$3.8 billion
— The amount of additional annual state funding requested by advocates for the Foundation Aid program.
$569 million
— The amount of additional annual state funding required to support a sound basic education 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
— The statewide average per pupil spending in New York, which is the highest in the nation.
$16.5 billion
— The total amount of Foundation Aid in the 2016-2017 school year.
$6,340
— The foundation amount per pupil for the 2016-2017 school year.
New York is constitutionally required to provide a sound basic education, yet the current Foundation Aid formula fails to distribute resources effectively by maintaining funding for all districts regardless of need. By reforming this formula to redirect $2.7 billion toward needy districts, the state could meet its obligations with only $569 million in additional funding rather than the billions requested by advocates.
Recommendations related to Sound Basic Education (SBE)
The state should fix the Foundation Aid formula and redirect $2.7 billion to needy districts to ensure a sound basic education.
The state should return Foundation Aid to its intended purpose of directing aid to the neediest districts.
The state must reform the distribution formula to meet its constitutional obligation to provide a sound basic education.
Key Data
$569 million
— Additional funding needed if the state fixes the Foundation Aid formula.
$2.7 billion
— Amount of funding to be redirected to needy districts under the proposed formula.
$4.3 billion
— Additional funding requested by advocates who have filed suit.
$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.
The Governor's proposed school aid budget fails to address existing inequities in the Foundation Aid formula, which was originally designed to ensure all students receive a sound basic education. Instead of fixing the formula to direct resources to the neediest districts, the proposal would make current funding flaws permanent and continue to favor wealthier districts.
Recommendations related to Sound Basic Education (SBE)
The state must reform the Foundation Aid formula to alleviate current inequities rather than making them permanent.
Policymakers should change the problematic features of the formula to ensure all districts could be fully funded under Foundation Aid for an additional $569 million.
Key Data
$4.3 Billion
— Amount that certain advocates claim local districts are owed in Foundation Aid.
$569 Million
— Additional funding required to fully fund all districts under Foundation Aid if problematic formula features were changed.
$1.1 Billion
— Total increase in school aid included in the New York State Executive Budget.
$16.5 Billion
— Total amount of Foundation Aid, representing more than two-thirds of all school aid.
3.9%
— Proposed increase in total school aid for fiscal year 2017-2018.
2.6%
— Proposed increase in Foundation Aid for school year 2017-2018.
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 faces unavoidable school aid cuts due to a significant budget gap, necessitating a strategy that prioritizes the neediest districts over across-the-board reductions. By reallocating state aid from the wealthiest districts, the state can protect funding for poorer communities while maintaining its commitment to providing a sound basic education.
Recommendations related to Sound Basic Education (SBE)
Harm to the neediest districts could be further minimized by even greater targeting of school aid reductions.
The state should halve the $900 million in state aid provided to the wealthiest districts to restore funding for districts in the six poorest deciles.
Limited available funding should be targeted to the neediest schools and pupils rather than investing profusely.
Key Data
$1.1 billion
— Proposed cut in school aid for local school districts for fiscal year 2010-11.
$52 billion
— Total spending on education in New York State in fiscal year 2007-08.
$28,754
— Average per pupil expenditure in the wealthiest 10 percent of districts in 2006-07.
$16,463
— Average per pupil expenditure in the poorest 10 percent of districts in 2006-07.
$900 million
— Amount of state aid received by the 136 wealthiest districts in the state.
$17,636
— Per pupil spending in New York in 2006-07.
New York State faces a court mandate to provide a sound basic education to over one million public school students, requiring billions in additional funding. To address this, the state must consider various revenue strategies, including reforming school aid formulas to better equalize wealth, reallocating funds, or implementing new tax policies, while balancing the fiscal needs of the state budget.
Recommendations related to Sound Basic Education (SBE)
The State should fully fund public schools entirely from State sources 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 and providing aid only to those that cannot meet per pupil adequacy targets.
The State should finance the incremental cost of a sound basic education through statewide revenues rather than relying on local school districts to bear the full responsibility.
Policymakers should free up existing resources to fund schools by cutting spending on other services, such as Medicaid and the prison system, where substantial sums can be saved.
The State should raise as much of the needed revenue as possible from non-tax sources, such as authorizing new forms of gambling, to avoid placing New York at a competitive disadvantage.
New York should restructure existing taxes to increase revenue and improve tax policy by broadening the tax base to include items currently exempt, such as remote and internet sales.
The State should impose a luxury tax on wealthy districts by adding a tax surcharge onto local effort above a spending threshold, requiring districts to share revenue with less fortunate areas.
Key Data
$4.7 billion and $5.6 billion
— The range of operating aid ordered by the court for New York City public schools over the next four to five years.
$8.4 billion
— The estimated cost of a statewide solution to the CFE-generated mandate.
$3.2 billion
— The amount of state funding committed to the School Tax Relief (STAR) program.
$158,319
— The average actual valuation of property per pupil among the lowest spending 10 percent of school districts in 2002-03.
$1,200,109
— The average actual valuation of property per pupil among the highest spending 10 percent of school districts in 2002-03.
$920 million
— The estimated cost of the new local property tax relief program in 2006-07.
New York City can meet the facility requirements for a sound basic education more efficiently by rezoning school districts and adopting year-round education schedules instead of relying on costly new construction. These strategies would create enough capacity to accommodate all students and reduce class sizes without the decade-long delays associated with building new schools.
Recommendations related to Sound Basic Education (SBE)
New zoning policies should be adopted to alleviate school crowding and create additional capacity for smaller class sizes.
Rezoning would have to be accompanied by some reconfiguration of grades within schools to effectively manage enrollment and capacity.
The Court should not dismiss policy options that use existing facilities wisely, such as rezoning and year-round education, to promptly provide children a seat in a structurally sound and well-equipped school without the delays or costs of new construction.
Implementing schedule changes on a district-wide basis should be pursued to reduce the difficulties in coordinating vacation and child care faced by families with children in different schools.
It may be necessary to impose tighter limits on the number of students that can enroll in desirable, 'good' schools to ensure balanced capacity across the system.
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 seats
— long-term shortage of school seats identified by the Campaign for Fiscal Equity.
136,430 seats
— unused capacity at under-utilized schools.
64,231 students
— excess enrollment at crowded schools.
1,268,574
— total capacity available for enrollment after implementing year-round education and rezoning.
2.3 million
— students at 3,181 schools in 565 districts and 46 states that had year-round education in effect during the 2002-03 school year.
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