State budget negotiations will not start in earnest until the new year, but Gov. Hochul is already backing off a push to cut funding to New York school districts that are losing enrollment.
Last year, Hochul proposed eliminating a provision known as “hold harmless” that ensures districts receive at least as much school aid as the year before, even if fewer kids show up for classes.
Both the state Senate and the Assembly shot the proposal down. The compromise was to study changes to the formula for another year.
That report came out Monday and suggested New York start to move away from the policy, which provides stability to school districts despite changes in population. But in a comment on the study, Hochul distanced herself from the recommendation.
“As we craft the upcoming executive budget, the governor believes we should avoid proposals that would negatively impact school budgets, such as eliminating the save-harmless provision of the Foundation Aid formula,” read a statement from the governor’s office.
Reps for the governor declined to elaborate further on the about-face, referring the Daily News back to the full statement, which said Hochul has “delivered more funding to public schools than any governor in state history.”
Hochul is not up for reelection until 2026, but is already facing jabs from possible challengers, from Bronx Democratic Rep. Ritchie Torres to Hudson Valley Republican Rep. Mike Lawler. The Adams administration, facing a competitive primary for mayor next summer, also announced last week it would not claw back funding from the city’s schools losing enrollment, a politically popular move with parents and unions.
In the 314-page report, the Rockefeller Institute of Government, the Albany-based think tank tapped for the study, suggested that New York phase out at least half of hold harmless over five years. Researchers also said the state should set per pupil local income and property wealth thresholds, above which school districts would not be eligible for the extra funds.
At least 88% of school districts have lost enrollment over the past decade, according to the report, and a sizable share of the districts benefiting from the extra dollars were considered well-off before the state’s investment.
Fiscal watchdog group Citizens Budget Commission, which supports the phaseout of save harmless, warned the proposals could increase spending if lawmakers “cherry-pick” which to adopt during negotiations.
“New York needs to restrain state education spending — nearly $40 billion annually — to make it affordable and better targeted to high-need districts,” Andrew Rein, president of the Citizens Budget Commission, said in a statement, “rather than sending billions of dollars to wealthy districts that do not need it.”
Hochul is expected to unveil her executive budget proposal next month.
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