New York School Funding Formula Overdue for Reform, Study Finds

New York State schools are poised for significant change as a comprehensive review of the state’s school funding formula, Foundation Aid, proposes an overhaul to better reflect student needs and regional costs.

The 314-page report, commissioned by Gov. Kathy Hochul and the state Legislature, presents a "menu of options" for policymakers to consider as they navigate the complex task of revamping a system that has remained largely unchanged since 2007.

The Rockefeller Institute of Government, tasked with conducting the analysis, found several key components of the current formula outdated and requiring immediate attention. These include:

• Outdated Poverty Data: The system currently relies on 2000 census data, failing to accurately reflect contemporary poverty levels within school districts.

• Inadequate Funding for English Language Learners: The study highlighted the pressing need for increased funding for English Language Learners, who often require additional resources to succeed.

• Inaccurate Regional Cost Calculations: The report urges revisiting how regional costs are calculated to ensure equitable distribution of funding across various geographical areas.

• Neglecting Changing School Duties: The current formula doesn’t fully account for the evolving roles of schools beyond traditional education, such as providing increased support for students’ social and emotional well-being.

The proposed changes aim to address these deficiencies. Key recommendations include replacing outdated poverty data with more recent estimates, creating a nuanced weight system for English Language Learners based on proficiency levels, and adjusting the way regional costs and local contributions are calculated.

The report acknowledges the need for a phased-in approach to avoid drastic year-to-year funding changes for any district. It emphasizes the importance of predictability and stability for school administrators as they plan and allocate resources.

One significant proposed change targets the “hold-harmless” provision, a safety net that guarantees no school district receives less aid than the previous year, even in the face of declining enrollment. While the report identifies potential adjustments, Gov. Hochul has signaled her intention to prioritize stability and avoid any reductions that could negatively impact school budgets.

“As we craft the upcoming Executive Budget, the Governor believes we should avoid proposals that would negatively impact school budgets, such as eliminating the hold-harmless provision of the Foundation Aid formula,” said Kara Fesolovich, a spokesperson for Hochul.

The New York State United Teachers (NYSUT) union has expressed support for some of the recommendations, particularly those aimed at ensuring the formula reflects the evolving needs of student populations.

“However, we remain concerned about recommendations that arbitrarily lower the Foundation Aid amount instead of considering the necessary support for our schools’ evolving student populations,” said NYSUT President Melinda Person.

Assemblyman Ed Ra (R-Franklin Square) emphasized the urgency of updating the funding formula. "Ensuring our children have the tools and knowledge they need to succeed in today’s world is our most important responsibility,” he said. “The outdated funding formula is shortchanging our local schools, depriving them of the resources necessary for critical programs that are essential to our students’ futures.”

The road to reform has officially begun. Lawmakers now have a month to dissect the report’s findings before the legislative session commences in January. As they delve into the details, the fate of New York’s schools for years to come hangs in the balance.