The New York State Board of Regents is seeking a $1.35 billion budget increase, with plans to address the outdated Foundation Aid formula. This proposal includes a short-term request for a $253.4 million increase in Foundation Aid funding for schools next year and a long-term plan, which involves a $1 million study to replace the existing formula. The potential impact on lower-income families and people of color lies in the need for equitable distribution of state aid, addressing outdated formulas, and determining the state’s financial obligation to support public education. However, the proposal may face challenges due to the state’s $4 billion budget gap and the governor’s reluctance to raise personal income taxes on the wealthy.