State of the States, New York State 2024-25

• In Event: Funding and outcome based decisions in education

Proposal

All New York students deserve a high-quality education, from prekindergarten through college. Governor Hochul and the Legislature prioritized school funding in the FY 2025 Budget while still putting New York State on the path toward a more equitable school funding formula. Governor Hochul also signed ‘Back to Basics’ legislation to ensure New York schools use evidence-based reading instruction. Additionally, Governor Hochul secured provisions in the FY 2025 Budget to make college more affordable for New York students and expand pathways to higher education.
Governor Hochul’s education priorities secured in the FY25 Budget also include:
• $36 billion in total school aid, including $24.9 billion in Foundation Aid
• $1.29 billion for SUNY and CUNY capital projects.
• $409 million for SUNY and CUNY operations.
• Raising the minimum award for the Tuition Assistance Program (TAP) from $500 to $1,000 and increasing the student income limits for TAP eligibility.
• A Rockefeller Institute study to examine Foundation Aid and prepare for formula changes next year.
• An extension of mayoral control of New York City schools for two years. (1)

School Aid The State provides a substantial amount of financial support for public schools through State formula aids and other grants. For over a decade, New York has ranked the highest in the nation for per pupil spending. In SY 2022, New York spent $29,873 per pupil, 91 percent more than the national average of $15,633 per pupil. 5 In SY 2024, approximately 2.5 million kindergarten through 12th grade students are enrolled in the State’s public schools, including 181,000 students enrolled in charter schools. Compared to SY 2014 levels, enrollment in the State’s public schools has declined by roughly 9 percent (231,000 students). Despite these enrollment declines, State aid has continued to increase each year. From SY 2021 to SY 2024, total School Aid grew by an average of $2.3 billion (7.7 percent) per year (excluding the SY 2022 Pandemic Adjustment restoration), driven primarily by the three-year phase-in of full funding of the Foundation Aid formula. In addition to State aid, school districts have continued to raise revenue through local property tax increases, which when combined with State aid increases and Federal COVID-19 pandemic related assistance, have afforded many districts the ability to amass substantial reserves and surplus balances. Adding to historic increases in funding over the past three years, the Enacted Budget includes $35.9 billion for School Aid in SY 2025, an increase of approximately $1.4 billion (4.1 percent) from SY 2024, inclusive of the State’s full takeover of funding for prekindergarten expansion grants previously supported with Federal American Rescue Plan Act of 2021 (ARP) funds. Excluding the State funds needed to support this takeover, the School Aid increase for SY 2025 totals $1.3 billion (3.8 percent). This growth reflects a $934 million (3.9 percent) Foundation Aid increase, driven primarily by the application of a 2.8 percent inflation factor in the Foundation Aid formula. Since SY 2022, State-funded School Aid will have increased by over $6.6 billion (22.6 percent), inclusive of the Enacted Budget's increase. (2)
SUNY reached an agreement with United University Professions (UUP) that runs from Academic Year (AY) 2023 to AY 2026 and provides a 2 percent across-the-board salary increase for AY 2023 and 3 percent across-the-board salary increases from AY 2024 to AY 2026. The agreement with UUP will also provide a $1,500 bonus to employees in AY 2025 and AY 2026. (3)

Author

• OSNAT ZAKEN, Touro University, Graduate School of Education