NEW YORK – EdTrust–New York condemns the changes in the Foundation Aid formula included in the enacted state budget, which undermines decades of progress toward educational equity. We are deeply concerned that the Governor adopted only one recommendation from the Rockefeller Institute’s Foundation Aid study, updating how the state measures poverty to use Small Area Income and Poverty Estimates (SAIPE) data, while ignoring its equally critical proposal to progressively increase the weight for concentrated poverty. By omitting this key element, the Governor made the Foundation Aid formula less progressive. Instead of directing more resources to high-need districts, this change shifts funding away from the very communities that need it most and redirects it to low-need districts.
The Foundation Aid formula is very complex, making it difficult to gauge the impact of changes like the shift to using SAIPE to measure poverty without transparent, sophisticated modeling and public results—something the Governor should conduct before making major decisions. EdTrust-New York’s best estimates show that switching to SAIPE would cut funding for high-needs districts by 7% overall, with large districts like New York City and Yonkers facing 9% and 7% decreases, respectively.
At the same time, the Governor claims to be increasing support for large districts like the Big 5. In reality, the only reason high needs districts are receiving more funding is because of demographic shifts in their student populations, not because of any deliberate policy decision to address funding for high-needs districts. From school year 2022–23 to 2023–24, enrollment in high-need districts declined by less than 0.5%, yet the number of economically disadvantaged students rose by nearly 2%, and English Language Learner (ELL) enrollment grew by over 5%. These demographic shifts are the main reason why districts like New York City are receiving additional funds this year, not because the Governor is investing more in education.
Meanwhile, the Governor guaranteed all low-need districts a minimum 2% increase in funding and failed to eliminate the outdated “hold harmless” provision, which continues to award full funding to districts with declining enrollment. The result is a troubling step backward. A formula once considered among the most progressive in the nation is now being dismantled by choices that undermine equity and shortchange the students who need the most support.
The enacted budget also falls short in supporting Multilingual Learners/English Language Learners. In addition to updating the poverty measure and created a scaled weight for concentrated poverty, we also advocated for adjustments to better target support for Multilingual Learners/English Language Learners. While it raises the Multilingual Learners/English Language Learners rate from 0.5 to 0.53, this minimal increase is inadequate. The Assembly’s proposal to raise the weight to 0.65, more accurately reflects the needs of this diverse and growing student population, including the need for bilingual programming and support for students with interrupted formal education due to migration. The Governor’s approach does not meet the moment.
Additionally, the budget neglects the needs of students with disabilities, those in temporary housing or foster care, and excludes Pre-K and 3-K programs from the Foundation Aid formula. It also relies on an outdated method for calculating the base cost per student—an essential factor in determining what it truly takes to deliver a high-quality education. We urge the state to adopt a more accurate and equitable approach, using both professional judgment panels and evidence-based methods to calculate how much it truly costs to educate a student in New York.
Finally, EdTrust–New York calls on the state to establish and fully fund a School Funding Advisory Council tasked with transparently and comprehensively updating the Foundation Aid formula. This year’s behind-closed-doors decisions highlight the urgent need for such a body. Without it, the state will continue making undemocratic decisions that ignore equity and the needs of New York’s most underserved students.
New York once led the nation with a progressive approach to school funding. Now, that legacy is being dismantled by choices that ignore student need and equity. We must reverse this trend to ensure every student, in every district, receives the support they deserve.
###
About EdTrust-New York:
EdTrust-New York is dedicated to eliminating equity and opportunity gaps that hinder students from reaching their full potential. We focus on ensuring that students of color, including Black, Latinx, Native American, and Asian American and Pacific Islander students, and those from low-income backgrounds achieve high levels of success from early childhood through college. For more information, visit EdTrustNY.org.