Skip to main content

FOUNDATION AID

Your Questions, Answered.

What is Foundation Aid?

Foundation Aid is the complex formula by which our public schools receive state funding. It’s a vital mechanism for addressing educational disparities in high poverty districts where communities can’t draw as much from local property taxes. The formula was created in 2007, in response to a Campaign for Fiscal Equity court case that found the state was failing in its constitutional obligation to provide a sound, basic education to all its schoolchildren. But the state didn’t fully fund Foundation Aid until 2023. By that time, many of the original formula’s elements were already outdated.

Foundation Aid is the complex formula by which our public schools receive state funding. It’s a vital mechanism for addressing educational disparities in high poverty districts where communities can’t draw as much from local property taxes. The formula was created in 2007, in response to a Campaign for Fiscal Equity court case that found the state was failing in its constitutional obligation to provide a sound, basic education to all its schoolchildren. But the state didn’t fully fund Foundation Aid until 2023. By that time, many of the original formula’s elements were already outdated.

Why does the formula need to be updated?

The current funding formula has not been updated in nearly two decades. A lot of the factors that determine how money is allocated have changed in that time — like school district demographics, poverty levels, and the number of students with special needs — not to mention inflation and the rising costs of educating students. Put it this way: If you were to create a home budget based on grocery and gas prices from 10 years ago, you’d find it impossible to keep your cupboards stocked or your gas tank full today.
The current funding formula has not been updated in nearly two decades. A lot of the factors that determine how money is allocated have changed in that time — like school district demographics, poverty levels, and the number of students with special needs — not to mention inflation and the rising costs of educating students. Put it this way: If you were to create a home budget based on grocery and gas prices from 10 years ago, you’d find it impossible to keep your cupboards stocked or your gas tank full today.

Should declining enrollment impact school funding?

Contrary to popular belief, the cost of educating students doesn’t necessarily change when the number of students drops. Think of a home mortgage for a family of five. If one person were to move out, the monthly bills would still largely be the same — the mortgage payment, insurance, utilities, maintenance, etc. If a class size decreases from 25 to 20 students, the fixed costs for educating those 20 students remain the same.
Contrary to popular belief, the cost of educating students doesn’t necessarily change when the number of students drops. Think of a home mortgage for a family of five. If one person were to move out, the monthly bills would still largely be the same — the mortgage payment, insurance, utilities, maintenance, etc. If a class size decreases from 25 to 20 students, the fixed costs for educating those 20 students remain the same.

What happens if schools don’t get the funding they need?

They have to make difficult decisions to cut programs like music, art and electives that keep kids excited to come to school. Their ability to deliver special education, as well as AP courses, electives, and social and emotional supports for students will be decimated. Staff will also be on the chopping block — teachers, counselors, social workers — and class sizes could increase. In short, schools will not be able to provide the educational opportunities and academic experiences that our children deserve.
They have to make difficult decisions to cut programs like music, art and electives that keep kids excited to come to school. Their ability to deliver special education, as well as AP courses, electives, and social and emotional supports for students will be decimated. Staff will also be on the chopping block — teachers, counselors, social workers — and class sizes could increase. In short, schools will not be able to provide the educational opportunities and academic experiences that our children deserve.

What about all those reserve funds schools have?

A school’s reserve fund is a savings account to cover things like major repairs, long-term projects and unexpected expenses. It can also help mitigate a district’s need to raise taxes. Having this cushion is good financial management. However, school district’s unrestricted reserve funds are capped at 4% by law — even though New York state currently has over 15% of its budget in reserves.
A school’s reserve fund is a savings account to cover things like major repairs, long-term projects and unexpected expenses. It can also help mitigate a district’s need to raise taxes. Having this cushion is good financial management. However, school district’s unrestricted reserve funds are capped at 4% by law — even though New York state currently has over 15% of its budget in reserves.

What is NYSUT recommending?

Educators, administrators, superintendents, school boards and parents all agree it’s time to update the Foundation Aid formula to fully support our schools’ evolving student populations. In December 2024, the Rockefeller Institute of Government released a state-ordered review of the formula to guide potential updates. NYSUT expects the Rockefeller report to be just one of many analyses the governor and Legislature will use in their considerations. Any changes to the formula must promote stability and predictability for school districts. Above all, NYSUT is urging policymakers to prioritize the voices of students, parents and educators. Their lived experiences must guide the decisions that will shape the future of our public schools.
Educators, administrators, superintendents, school boards and parents all agree it’s time to update the Foundation Aid formula to fully support our schools’ evolving student populations. In December 2024, the Rockefeller Institute of Government released a state-ordered review of the formula to guide potential updates. NYSUT expects the Rockefeller report to be just one of many analyses the governor and Legislature will use in their considerations. Any changes to the formula must promote stability and predictability for school districts. Above all, NYSUT is urging policymakers to prioritize the voices of students, parents and educators. Their lived experiences must guide the decisions that will shape the future of our public schools.

Latest Story

Latest Story

NYSUT members testify on future of Foundation Aid

NYSUT members are making their voices heard in hearings across the state that will guide critical updates to the school funding formula.

Following the union’s successful campaign to protect New York schools from proposed school aid cuts in the executive budget, the Rockefeller Institute for Government was charged with hosting a series of events to gather public input on a path forward for the Foundation Aid formula.

Read More

Tell your school funding story

School districts all over New York State are affected by lack of funding. We need to hear how your district, your children are being impacted on a daily basis — and over the long term — by the state's continued inadequate education funding.

Tell us your story today.