New York Fact Sheets

Three cost studies conducted during 2003-04 in New York State recommended increases between $2.5 billion and $9.0 billion, annually, in pre-K–12 education spending–as much as 26.5%. The final reports were released in early 2004.

Fact Sheet on "New York Adequacy Study" (Prepared by American Institutes for Research and Management and Planning, Inc.)

Fact Sheet on "Resource Adequacy Study for the New York State Commission on Education Reform" (Prepared by Standard & Poor's)

Fact Sheet on "Estimating the Additional Cost of Providing an Adequate Education" (Prepared by New York State Education Department)

Pdf version of New York Costing-Out Fact Sheets

State Funding Context

In 2001-02, New York State's nearly 700 school districts spent $31.7 billion (exclusive of transportation and debt service for facilities financing) on pre-K–12 public schools, which enrolled 2.9 million students. Disparities across districts in New York are among the worst in the U.S.:

Spending among districts with at least 500 students ranged from $7,282 to $19,880 per-pupil (in 2001-02).
Districts educating low-income, minority, or ELL students need to spend more than other districts in order to address student needs. Yet, when all states were compared, New York had the second-largest low-income funding gap and the largest minority funding gap in the nation. (Kevin Carey, The Funding Gap: Low-Income and Minority Students Still Receive Fewer Dollars in Many States, at p. 9, The Education Trust Fall 2003)

In New York, local government provided 50% of school funding, while the state provided 46% and the federal government provided 4% (2000-01). Nationally, states provide over 50% of pre-K–12 school funding.

Funding Is Not Addressing Student Need

The single New York City school district educates over a third of the state's public school students, including 63% of the state's low-income students and 74% of the state's English language learners (ELL). New York City's schools and many of New York State's urban and rural districts (and those suburban districts that are property-poor) are under-funded and enroll relatively large percentages of high-need students. At the same time, New York's students face some of the highest standards in the nation to qualify for a high school diploma.

Court-Ordered Cost Study

In June 2003, New York's highest court declared the state education finance system unconstitutional and gave the state until July 30, 2004 to: 1) determine the cost of providing the opportunity for a sound basic education; 2) ensure that every school has the resources necessary for providing the opportunity for a sound basic education; and 3) ensure a system of accountability to measure whether the reforms actually provide the opportunity for a sound basic education.

The court also indicated that funding must be based on enrollment, not attendance, and be "calibrated to student need."

All Three Studies

All three studies determined that increased funding is needed in New York, but recommended different amounts. Nonetheless, all three developed several similar recommendations for changes in the policies and practices of the state's school funding system. They urged the state to:

Match school resources to student needs
Adopt a foundation-based approach
Provide "state aid" based on enrollment, instead of attendance.
Apply regional-cost adjustments
Direct most of the increased funding, between 62% and 88%, to the New York City School District and most of the remainder to other districts educating high-need students.
Simplify the funding system by combining many of the almost 50 separate state aid formulas into one "operating aid" foundation formula.

Moreover, all three studies EXCLUDED funding for school facilities and student transportation from their analysis of costs.

Only the State Education Department (SED) addressed the need for "start-up" funding, critical for bringing some schools up to the minimum level of resources necessary for them to become reasonable learning environments–given high rates of uncertified teachers, extreme overcrowding, and schools without libraries and laboratories.

All three studies have been criticized as underestimating the true cost of educating disadvantaged children by William Duncombe, et al., in Education Finance Reform in New York: Calculating the Cost of a "Sound Basic Education" in New York City, No. 28/2004 (Center for Policy Research, Syracuse University).

We provide summaries of the findings, methodologies used, and key recommendations of these studies, below, at: "NY Adequacy Study," "Resource Adequacy Study," and Regents "Foundation Aid Proposal."

School Funding Litigation in New York

Prepared by Molly A. Hunter, April 28, 2004