New York Prepares for Major School Funding Overhaul in 2025

New York State is gearing up for a significant overhaul of its school funding system, with changes expected to take effect in 2025. The move follows a series of public hearings conducted by the Rockefeller Institute of Government, which concluded on Wednesday, August 14th. The hearings focused on revising the state’s 17-year-old Foundation Aid formula, which is the primary mechanism for distributing school aid across districts.

The push for reform gained momentum earlier this year when Governor Kathy Hochul proposed changes to the school funding formula in her executive budget. However, the proposal faced substantial opposition, particularly from rural school districts that argued the changes would disproportionately affect them. In response, Governor Hochul tasked the Rockefeller Institute with studying the formula and providing recommendations by December 1, 2024.

One of the central issues identified during the hearings was the outdated nature of the Foundation Aid formula. Education leaders pointed out that the formula still relies on poverty data from the 2000 U.S. Census and has not updated its regional cost index. These flaws have led to calls for a more predictable and equitable funding system that better reflects current economic conditions and the needs of school districts.

The hearings also highlighted divisions among stakeholders regarding specific aspects of the formula. For instance, the Citizens Budget Commission, a nonpartisan budget watchdog group, supports phasing out the “hold harmless” provision, which prevents a decrease in a district’s aid despite declining enrollment. However, others, like Bob Lowry of the New York State Council for School Superintendents, argue that removing this provision could have drastic effects on certain districts and should be approached with caution.

As the Rockefeller Institute prepares its final report, education officials and advocates are urging a collaborative approach to the upcoming legislative battle over school funding. Michael Mulgrew, President of the United Federation of Teachers, emphasized the need for transparency and accountability in how state funds are allocated and spent by school districts, particularly in New York City.

With the deadline for recommendations approaching, the public has been invited to submit feedback to the Rockefeller Institute until September 6th. The outcome of this process will shape the future of education funding in New York, with potential impacts on every school district in the state.