New York City’s public schools could face a serious funding shortfall if changes suggested by Governor Kathy Hochul to the state’s foundation aid formula are approved. Advocates and education experts say these changes could cost the city around $350 million — a move they believe would hurt students, especially those from low-income backgrounds.
What Is Foundation Aid?
Foundation aid is the main way New York State distributes money to public schools. It provides funding per student, with extra attention given to students from disadvantaged backgrounds. The formula, however, has not been updated in decades, and many agree that a change is needed. But advocates argue that Governor Hochul’s proposed update doesn’t go far enough and could actually make things worse.
What’s Changing in the New Formula?
The changes to the foundation aid formula include a new definition of poverty, based on federal data. But it does not provide extra support for schools serving large numbers of poor students or those in areas with higher living costs — like New York City’s five boroughs.
According to Arlen Benjamin-Gomez, executive director of The Education Trust–New York, the new formula fails to account for concentration of poverty, which is essential to ensure fair support for schools in low-income areas.
“We really think that concentration of poverty is important,” she said. “It’s a way to make sure schools serving poor students are not shortchanged.”
How Much Could NYC Lose?
Advocates say that if Hochul’s proposal is passed, NYC schools could lose $350 million compared to what they would receive under the old formula. Though state lawmakers have reportedly added $140 million in education funding for the entire state during negotiations, that would still leave a huge gap.
Randi Levine, policy director at Advocates for Children, said, “Even if all of that $140 million went to New York City — which is very unlikely — it wouldn’t be enough to cover the loss.”
Local Efforts to Fill the Gap
At the city level, Mayor Eric Adams has proposed restoring funds to several education programs in his latest executive budget. These programs had faced cuts in earlier versions of the city’s budget. While advocates praised this move, they also warned that if state or federal aid is cut, those same programs might be the first to go again.
Benjamin-Gomez added that if the state’s funding falls short, “those are going to probably be one of the first things on the chopping block.”
Special Education Still Under Pressure
Levine also pointed out that, although the city has committed baseline funding for preschool special education seats, the need is still greater than the supply. Currently, over 600 children are waiting for seats, which highlights the ongoing need for increased funding in this area.
What’s Next?
The state budget is overdue, and negotiations are still in progress. Meanwhile, New York City’s own budget must be finalized by end of June. As both deadlines approach, educators, parents, and advocates continue to call for fair and full funding to protect critical services in public schools.
While Governor Hochul’s intention to modernize New York’s school funding formula is important, education advocates say the current proposal could leave thousands of students behind — especially in New York City. With high poverty rates and a steep cost of living, the city’s schools need more support, not less. As budget talks continue, the big question remains: Will New York’s leaders choose equity, or cuts?
