ALBANY, N.Y. (March 28, 2025) – A newly released report by the Alliance for Quality Education highlights the detrimental effects of Governor Hochul’s proposed changes to the Foundation Aid formula, showing that making these modifications on their own would result in the loss of hundreds of millions in funding from some of New York’s most high-need school districts.

The report, titled “Getting the Foundation Aid Formula Right: How Proposed Changes to School Funding Could Leave Some High Need Districts Behind,” details how the Governor’s proposal to update the way student poverty is measured would result in a smaller Foundation Aid increase than expected for 24 school districts, districts that serve some of the most marginalized and vulnerable student populations in New York State. The full report is available at aqeny.org.

Sixteen of those 24 districts are high-need districts, home to large numbers of economically disadvantaged students, students of color, English Language Learners, and students with disabilities, would be impacted. New York City alone stands to lose $347 million in expected Foundation Aid funding, directly affecting the largest and most diverse student population in the state.

The analysis underscores the pressing need for the enacted budget to protect educational equity and prevent cuts to essential student services, including staff reductions, leading to larger class sizes and fewer student supports.

While the Governor’s plan to update the outdated poverty data in the Foundation Aid formula is necessary, and was recommended by both the State Board of Regents and the Rockefeller Institute, this data should not be implemented in a vacuum.

This year the Senate and Assembly both proposed additional updates to the Foundation Aid formula that would protect high-need districts from funding losses due to updates in poverty measurement calculations. The Senate and Assembly proposals would:

Adjust the Regional Cost Index so high-cost districts like New York City and Yonkers are not unfairly grouped with lower-cost areas
Set a minimum 3% increase in School Aid for all districts, rather than the Governor’s proposed 2% minimum
Increase funding weights for English Language Learners to better support their unique educational needs.

State lawmakers must adopt these Senate and Assembly proposals in the enacted budget to ensure that Foundation Aid updates are made without creating new funding shortfalls for some districts. These adjustments would ensure all districts at risk of losses under the Governor’s proposed budget would receive adequate support in the coming school year.

Read the full report at aqeny.org.