Albany lawmakers are proposing changes to New York’s public school funding that could direct about $1 billion more to New York City classrooms, even as new national test data show some lower-spending states making gains. The plan renews the debate over whether to continue increasing funding or to focus on how the money is used and how outcomes are measured.
Who’s proposing the change
Two bills backed by Sen. John Liu and Assemblymember Jo Anne Simon would tweak how Foundation Aid is calculated, updating the regional cost index and better counting students in temporary housing and foster care, among other changes, according to the New York Daily News. Supporters argue the formula is stuck in the past and has not kept pace with the steep housing and labor costs facing New York City families and schools.
How much would the city get?
Reporting in the New York Post estimates the changes could pump about $819 million a year into the city’s school budget. That haul would land on top of an already massive Department of Education budget that the city comptroller pegs at roughly $35.01 billion for FY2026.
New York already spends more per student
New York City already shells out an eye-popping amount per student, with budget analysts putting per pupil spending in the low to mid $40,000s, a level the Citizens Budget Commission has flagged as the highest in the country. At the state level, New York as a whole sits well above the national average, while many Southern states spend only a fraction of that, according to U.S. Department of Education figures from NCES.
Tests and adjusted rankings complicate the picture
The debate is not just about raw spending totals. Demographically adjusted analyses of NAEP scores, which factor in student characteristics such as poverty and English learner status, reshuffle state rankings and show some lower spending Southern states climbing once those differences are taken into account, according to the Urban Institute adjusted NAEP tool. At the same time, the Nation’s Report Card and related releases have highlighted uneven progress nationwide and worrying declines in reading that muddy any simple dollars in, results out narrative, per the National Assessment Governing Board.
Money vs. accountability
Some critics are openly skeptical that more cash alone will move the needle. “If it was just about the money, our schools would be number one academically,” Manhattan Institute analyst Danyela Souza told the New York Post. Former deputy chancellor Eric Nadelstern has likewise argued the city should face tougher accountability rules before anyone passes the hat in Albany again. That camp is pushing for new performance benchmarks to be baked into any fresh funding.
What to watch in Albany
Lawmakers are expected to chew over the proposals as part of the spring budget talks, with education hearings and Senate Education Committee meetings already slated on the calendar, according to New York State Senate records. Watch for two big flashpoints: whether the reworked formula truly reflects the higher costs that come with running big city schools, and whether Albany leaders will attach new accountability strings to the extra dollars or simply reshuffle how the existing pot of money gets carved up.
