by Dr. Rick Timbs, Executive Director of SSFC
Statewide School Finance Consortium (SSFC) Begin the Year Summary
2026-27 will be an interesting year for school districts and the Statewide School Finance Consortium. The Foundation Aid formula weighs heavily on our minds. The state is closing in on almost 78% of all school districts as Save-Harmless. I doubt if there could be any easier way to determine that the formula is out of touch with the financial needs of school districts.
Our Challenges:
There is no doubt that expense increases are growing faster than any “ordinary” revenues.
There is still a mistaken belief that the Tax Cap is 2%. We must do a better job with the public and state government about this errant notion.
First, simply looking at the components of the calculation of the Tax Cap easily identifies that the Tax Cap is NOT going to be 2% mathematically. While it is possible to come out that way, it would be extremely rare.
Second, the use of 2% in the Tax Cap formula only refers to the 2% limit on the use of the Consumer Price Index (CPI) in the computation. That’s it.
Third, there still is a distinctive disadvantage to the use of PILOT Agreement (Payments in Lieu of Taxes) amounts in the Tax Cap calculations. I suggest district band together working with County IDAs to stop PILOT agreements in favor of Community Host agreements (also known as Host Community Agreements) as soon as possible. Should BOCES’ or districts need assistance in this effort please contact me.
The Battle to Improve the largely outdated and arbitrary Foundation Aid formula continues.
Below is an excerpt from an email I received from Michael Rebell who continues to ally with us in this fight.
“The oral argument in Maisto v. State of New York will take place before the Appellate Division, 3d Dep’t, in Albany on the afternoon of Tuesday, September 15 (exact time to be announced.) The argument will be live-streamed, and a video will also be available in the court’s archive. Here is a link to the home page of the court’s website: https://www.nycourts.gov/ad3/
I will be making a strong argument for the Court to order the state to promptly develop a new foundation aid formula to replace the existing formula that is now 20 years old and is replete with many out- of- date and inequitable provisions. Today’s students have a constitutional right to fair funding and adequate resources that meet current needs.
The Court’s decision to allow me, as counsel for amici, to participate in the oral argument indicates that they are interested in learning more about our constitutional arguments. I am hopeful for a favorable outcome.
The timing of the argument at the beginning of the new school year provides an ideal opportunity for you to remind your members and your community of the importance of continuing to press the state to develop a new school funding formula that is equitable and adequate. Please share information about the case and its significance with your networks and your media contacts.
Thank you again for supporting the amicus brief and our continuing fight for fair funding.
Best,
Michael
Michael A. Rebell
Education for Democracy Project
Harvard Law School
Professor Emeritus, Teachers College,
Columbia University
A few critical elements of the Foundation Aid Formula that need attention immediately
Foundation Amount: This is the first number in the formula; $8,273 per student. This number has not been studied in any way to determine is validity since 2015. Clearly, it does not take only $8,273 to educate a child in New York State Public Schools in 2026-27. An increase in this value is critical to the removal of a significant number of school districts from Save-Harmless status and result in increased aid to reflect increased costs more realistically.
Expected Local Share: This portion of the Foundation Aid formula is largely based on Actual Value (think Full Value) property values, which throughout New York State tend to often increase over time, and it defines the portion of a child’s educational cost that the formula stipulates as the responsibility of the local school district. In the formula this amount is a subtraction to help arrive at the final state obligation for Foundation Aid. Your amount can be found in your State Aid data from the State Education Department available on the NYSED website. Compare it to previous years. If it is going up over time, your district is inheriting greater responsibility for the cost of the education of the children in the district.
Weighting Students With Disabilities: As you are all aware, within the Foundation Aid formula, general education students in the Total Aidable Foundation Pupil Unit (TAFPU) calculation are considered or weighted as1.0. Students with special needs . considered Students with Disabilities (SWD) in the formula are counted as 1.41 . Thus, the school district TAFPU value will usually be larger than your enrollment value. This, thankfully, recognizes the additional cost to the education of Students with Special Needs. However, this value has not changed historically for a long time and should be updated to reflect modern program offerings for these students to meet their needs, state and federal mandates and the cost associated with such programs.
I remain concerned over the internally and externally perceived financial condition of many school districts across the entire State of New York. See my June Newsletter article for more specifics.
Category 1: School districts concerned for the future
These are school districts that are beginning to realize they are not as financially secure looking into the future as they had hoped they would be. They appear stable for now but are in a quandary about how to approach impending financial decisions that could alter their educational programs, culture and local political standing.
Category 2: School districts that know they are in financial trouble
These school districts have done research, and it clearly indicates that their financial future puts them in jeopardy through a diminishment of educational resources and the inability of their finances to support their mission. Remedies are difficult financially, culturally and politically.
Category 3: School districts that have not figured out how much financial trouble they’re in as the future quickly approaches.
These school districts have not had the time, resources or inclination to examine their long-term condition in the light of their mission, community expectations, and their relationship to the financial underpinnings of the district. The fear is that the longer they go without realizing their true condition moving forward, the more difficult it will be to adjust finances, practices and other related elements to school finance. Further, these school districts risk their credibility as School Boards and the Public do not like negative financial surprises.
In Closing, a reminder
Be prepared for another difficult financial year.
Board members please attend regional NYSSBA and regional School Boards Association meetings. Superintendents please be active in NYSCOSS and regionally. And of course, School Business Officials partake in NYASBO and the regional chapter meeting and workshops.
Work regionally and statewide, learn to lobby and of course:
Attend Statewide School Finance Consortium (SSFC) workshops. If you need one for your regional unit, give me a call, I’m ready!
Be well,
Rick
