School districts in New York are getting smaller, but their financial issues are getting worse

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School districts in New York are getting smaller, but their financial issues are getting worse

Across New York State, school districts are facing serious financial challenges. Falling student enrollment, rising costs, and unpredictable funding are forcing many schools to make tough decisions. In some areas, like Mount Vernon, that means closing schools. Other districts are cutting programs, raising taxes, or finding creative ways to save money. These changes are affecting students, families, and educators in deep and lasting ways.

Mount Vernon Faces School Closures

In December, the Mount Vernon City School District announced it would close three K–8 schools. This decision is part of a larger plan to fix a major budget deficit. Erica Peterson, PTA president at Mount Vernon High School, fears these closures will hurt the community and make it harder to attract new families. “It’s heartbreaking to see something like this,” she said.

Mount Vernon is currently ranked as the most financially stressed school district in New York, according to the State Comptroller’s Office. The city is also dealing with $59 million in unpaid taxes, some of which should have gone to local schools.

At the same time, enrollment has been falling. In 2016, the district had over 8,000 students. By 2027, that number may drop to 6,000. With fewer students and lower tax income, the district is struggling to pay for staff, programs, and building maintenance.

Statewide Enrollment Is Declining

New York State’s overall school enrollment has dropped to the lowest level since the 1950s, with only 2.4 million students. This decline began around 2011 and got worse during the COVID-19 pandemic. Still, school costs continue to rise, even when enrollment goes down.

According to the latest review by the State Comptroller, 22 school districts are now in “fiscal stress.” That number was just 16 last year. Most schools facing these problems try to avoid cutting services, but budget pressures often make cuts necessary.

York Central: A Small District with Big Dreams

Outside Rochester, York Central School District has seen its student population shrink by nearly half since the 1990s. Today, it serves just over 600 students. Despite its size, the district offers mental health services, robotics, and digital arts classes. Superintendent David Furletti says students need these programs to succeed in the modern world.

But these programs come with high costs, and last year, York ran a deficit. Many of its students are economically disadvantaged, which increases the need for extra support. The district is now reviewing its budget to find ways to balance high-quality education with limited funds.

Middle Country District Finds Balance

The Middle Country Central School District on Long Island faced financial troubles even before COVID-19. When the pandemic hit, the district spent $6 million to safely reopen schools. Since then, state aid has been unpredictable—jumping between $400,000 and $12 million in different years.

Although enrollment has started to recover, more students are coming in with disabilities and higher needs. That means more spending. The district has taken steps to cut costs, such as using solar panels and adjusting staff numbers through retirements. Today, Middle Country is no longer considered a district in fiscal stress.

Newfield School District Learns from the Past

Near Ithaca, the Newfield Central School District faced tough times during the pandemic. Enrollment had dropped from 800 to around 630, but spending hadn’t changed. When Eric Hart became superintendent in 2020, he had to make fast changes.

The district cut staff through attrition and removed some elective classes. A property tax increase helped close the budget gap, and federal pandemic funds filled in the rest. Now, Newfield is also off the fiscal stress list. School leaders say districts must pay close attention to property trends, demographics, and staffing to avoid future financial crises.

From small towns to urban areas, New York’s school districts are feeling the pressure of rising costs and declining enrollment. While each community is trying to manage the crisis in its own way, the overall message is clear: schools need stable funding, long-term planning, and strong community support. Whether it’s cutting staff, closing schools, or raising taxes, the goal remains the same—to provide quality education to every student, no matter the challenges.

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