Overview

• New York City will receive $314 million less under the revised Foundation Aid formula than it would have under the previous version, despite a net increase of $539 million in overall funding.
• The state budget raises total school aid to $37.6 billion, a $1.7 billion increase from last year, with $10.46 billion allocated to NYC schools.
• The formula now uses updated poverty metrics, replacing 2000 Census data with Small Area Income and Poverty Estimates (SAIPE), and broadens the definition of economically disadvantaged students.
• Critics argue the changes undermine equity by excluding most regions, including NYC, from cost-of-living adjustments, while only Westchester County benefits from a regional update.
• Advocates have expressed disappointment with the limited reforms, citing insufficient support for high-need students and a lack of comprehensive updates to the outdated funding model.