After Foundation Aid and the “hold harmless” provision survived New York’s 2025 budget process, Governor Hochul stated in her 2025 budget press release that education priorities include “a Rockefeller Institute study to examine Foundation Aid and prepare for formula changes next year.” Here’s what happened next…

The Rockefeller Institute embarked on a large Foundation Aid study that included collecting data, input, and feedback from numerous stakeholders, including school families, teachers, staff, administration, boards of education, appointed and elected officials, education experts, and education support and advocacy groups.

In July and August, the Institute hosted five public hearings in New York City, Buffalo, Farmingdale, Laurens, and Guilderland (click the link to see the livestream recording). Hearings featured invited stakeholders to provide testimony and then public comments about potential changes to the Foundation Aid formula.

By early December, the Institute is supposed to share its findings and policy options with the Legislature and the Governor.

Most constituents appear to be on board for changing the Foundation Aid formula, considering it was created in 2007, is based on census data from 2000, and doesn’t reflect how dramatically schools, learning, and demands have changed over the last 17 years.

At the hearings and via other channels, a variety of stakeholders presented their take on what needs to happen. NYSUT and UFT presidents shared their observations about where the Foundation Aid formula comes up short and what it should address. Both also expressed concern that the study focuses on financial sustainability versus providing a quality education.

Union members shared a variety of considerations from schools’ evolving role as a social safety net, geographic isolation contributing to costs, and a formula that uses outdated data to address mental health, housing and food insecurity, and other special needs.

The New York State Council for School Superintendents shared principles for the study, as well as recommendations. An education policy and advocacy organization asserted any changes need to be student and equity-focused, with funds reaching those requiring the most support. Budget watchdog groups and education law groups have their own opinions on the matter. One group is going as far as creating its own fair and equitable Foundation Aid formula.

(Even before the Rockefeller Institute study, the Association of School Business Officials drafted a State Aid Proposal and the NYS Educational Conference Board  shared their recommendations for a Foundation Aid formula review.)

Although the Rockefeller Institute’s final public hearing was held on August 14, stakeholders can still share input via an online form through Friday, September 6, at 11:59 pm (EST). In fact, a number of school districts have shared information about the public hearings and online form to engage their communities in the discussion (and perhaps set the stage for Foundation Aid changes).

As you work to stay abreast of how Foundation Aid may change and what it may mean to your district, please remember you can count on RBT CPAs for your accounting, advisory, audit, and tax needs. Learn how we can be Remarkably Better Together. Contact us today.

RBT CPAs never offshores work outside of the U.S., so you always know who is handling your financial information.