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N-SSBA's Position Statement on Changes to New York State’s
Foundation Aid Formula
As the landscape of education evolves, so must the mechanisms that ensure equitable and adequate funding for our schools. New York State’s Foundation Aid Formula, a cornerstone of educational funding, requires critical updates to address the pressing challenges faced by modern schools. This position statement supports changes to the Foundation Aid Formula to account for but are not limited to increased costs in mental health services, school security, technology, and demographic changes.
It's important to remember that the Foundation Aid Formula was created in response to a court decision regarding how much aid the State should be providing to local school districts to meet its constitutional obligation to provide a sound basic education to every student in New York State (Campaign for Fiscal Equity, Inc. v. New York).
We must recalibrate the base amount of the Foundation Aid Formula, which has not been updated since 2016, to address these issues and inequities. A review of New York State school district financial reports reflects dramatic increases in expenses in all three (3) of these categories. The new Foundation Aid Formula base amount must be updated to reflect the current realities of the investment schools are making to meet the needs of providing a sound basic education, as defined by the Campaign for Fiscal Equity, and New Yorkers for Students' Educational Rights v. New York State decisions.
Addressing Increased Costs in Mental Health Services
The mental health of students is paramount to their academic success and overall well-being. Schools are seeing increased needs, underscored by rising rates of anxiety, depression, and other mental health issues among students of all demographics. The current funding formula does not adequately account for the escalating costs associated with hiring qualified mental health professionals, implementing supportive programs, and creating safe and inclusive environments for all students. An updated formula must include provisions for these essential services to ensure that all students have access to the mental health support they need to thrive. Schools have seen expenses increase over 37% in this category since 2016.
School Safety and Security
The safety of our students and staff is a fundamental priority. In recent years, the costs associated with maintaining and enhancing school security have surged due to the need for advanced security systems, personnel training, and the implementation of comprehensive safety protocols. The Foundation Aid Formula must reflect these increased expenditures to ensure that schools can create and maintain secure learning environments without diverting funds from other critical educational resources. Schools have seen expenses in this category increase over 60% since 2016.
School District Technology and Cybersecurity Infrastructure
Technology plays a crucial role in modern education; school districts have made significant investments in technology and their overall infrastructure to meet mandated changes in protecting student and employee data, as per NYS Ed Law 2-D laws and regulations, to cite an example. School districts have experienced astronomical increases in expenses regarding cybersecurity needs and related insurance policies. Costs in these categories have increased more than 44% since 2016.
Overall Analysis of Recalibration of the Foundation Aid Formula Base Amount
Our analysis of the costs required to provide a sound basic education and meet today’s needs and expectations, as defined by the aforementioned court decisions, would result in an increase to the base amount of $3,327 per pupil. For reference, the current Foundation Aid base amount is $8,040 per pupil and was calculated using the “Successful School’s” model, similar to the approach used when the Foundation Aid formula was introduced in the 2006-2007 school year. We also recommend a phase-in approach to reflect this increase over a three (3) year period.
Reflecting Changes in Demographics and Poverty Indexes
Demographic shifts and changes in poverty levels profoundly impact educational needs and resource allocation. Schools serving high-poverty communities face unique challenges that require additional support. The current formula does not sufficiently address the disparities in funding arising from these particular demographic changes. An equitable funding model must consider factors such as the concentration of poverty, the needs of English Language Learners, and other demographic indicators to distribute resources in a more equitable and effective method. We are therefore advocating that New York State utilize the United Way’s “ALICE” (Asset Limited, Income Constrained, Employed) measure to identify the poverty level of a community, which is updated regularly and reflects actual regional cost differences.
Use of a School District’s Reserves and or Surpluses/Deficits to Determine Expected Local Contribution
We adamantly oppose any attempt to incorporate this concept into any calculation for the Foundation Aid formula. School Boards who manage their budgets in a fiscally responsible manner, with foresight and planning, should not be penalized for being fiscally prudent. School districts have long sought to have the same ability as other municipalities with respect to restrictions on reserves. For example, school districts can only maintain a level not to exceed 4% in undesignated reserves, while municipalities, in general, have no such restriction, while New York State currently maintains over 15% in reserves. In addition, school district budgets and finances, including reserve levels, are presented annually and voted on by their local communities. School district finances have a high degree of transparency and accountability with the communities they serve.
Enrollment Changes
Enrollment changes did not happen overnight, and school boards and districts have adjusted accordingly for enrollment changes over time by either lowering class sizes, changing course offerings, or closing buildings (in some cases).
We recommend creating a realistic phase-in for districts that have experienced enrollment changes and are currently on “Save Harmless” because of such changes. We are recommending that any adjustments that need to be made due to a decade-long change in enrollment be made with a phased-in approach, with a minimum of a three (3)-year phase in period. This will allow school districts to adequately plan and adjust to changes in expected aid.
Conclusion
Updating New York State’s Foundation Aid formula is imperative to meet the contemporary needs of our educational institutions. By accounting for increased costs that include, but are not limited to: mental health services, school security, technology, and changes in demographics (especially poverty indexes), we can ensure that all students receive a high-quality education in a safe and supportive environment. These changes will not only enhance educational outcomes, but also promote the reality of equity and opportunity for every student in New York State.
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