Foundation Aid: New York State School Funding Formula

What is Foundation Aid?

Foundation Aid is the complex formula by which our public schools receive state funding. It’s a vital mechanism for addressing educational disparities in high poverty districts where communities can’t draw as much from local property taxes.

Why does the formula need to be updated?

The current funding formula has not been updated in nearly two decades. A lot of the factors that determine how money is allocated have changed in that time — like school district demographics, poverty levels, and the number of students with special needs — not to mention inflation and the rising costs of educating students.

Should declining enrollment impact school funding?

Contrary to popular belief, the cost of educating students doesn’t necessarily change when the number of students drops. Think of a home mortgage for a family of five. If one person were to move out, the monthly bills would still largely be the same — the mortgage payment, insurance, utilities, maintenance, etc.

What happens if schools don’t get the funding they need?

They have to make difficult decisions to cut programs like music, art and electives that keep kids excited to come to school. Their ability to deliver special education, as well as AP courses, electives, and social and emotional supports for students will be decimated. Staff will also be on the chopping block — teachers, counselors, social workers — and class sizes could increase.

What about all those reserve funds schools have?

A school’s reserve fund is a savings account to cover things like major repairs, long-term projects and unexpected expenses. It can also help mitigate a district’s need to raise taxes. Having this cushion is good financial management. Reserves are not meant to be used to make up for large and unexpected reductions in state funding.