New York’s public schools are the foundation of strong communities, and Foundation Aid is supposed to make sure that every child, no matter their zip code, race, or family income gets the education they need to thrive.
right now, that promise is under threat.
Quick links:
Learn more about AQE’s 2026 priorities specific to: 1) revenues, 2) foundation aid, and 3) child care
What is Foundation Aid?
Foundation Aid is New York State’s school funding formula, also known as classroom operating aid formula. It was created to begin to close the spending gap (which is also an opportunity gap) between school districts by distributing state education dollars based on student and community need, especially in schools serving higher concentrations of low-income students, English language learners, students with disabilities, and students of color. The formula was born out of a legal battle that began decades ago.
RESEARCH SHOWS: The availability of school resources is closely tied to student outcomes. Without adequate funding, schools simply cannot provide the quality education that every child is in New York is constitutionally entitled to.
The CFE Lawsuit: A Promise Made to ALL New Yorkers
In 1993, parents filed the Campaign for Fiscal Equity (CFE) lawsuit against the State of New York, arguing that children, especially in schools with majority low income, Black and brown students, were being denied their constitutional right to free and appropriate education.
In 2006, New York State Court of Appeals ruled in CFE’s favor for the final time. The state’s highest court found that the State had violated students’ rights by failing to provide adequate funding for public schools. As a result of the ruling and enormous public pressure, New York State affirmed students’ right to “a sound basic education,” and committed to a large increase -$5.5 billion- in basic operating aid, known as Foundation Aid, to be phased in over four years. That full funding took many years longer than expected to come into full effect, finally delivered in full by 2023.
Today, with school funding getting cut from the federal level, we can’t let New York backslide on the constitutional rights of its students. The CFE ruling wasn’t just about money. It was about recognizing that Black and brown students were systemically denied educational opportunity, dignity, equity, and justice, too.
This year we’re fighting to:
Update and Fully Fund the Foundation Aid Formula
The State must revise the Foundation Aid formula to meet all students’ needs and allow for improvement, while fully funding it.
The Foundation Aid formula uses 20-year-old population data, a low per-student amount on which additional funding is added depending on the particular characteristics of the student, and does not adequately reflect the range of needs of students with disabilities, English language learners, or children whose families are experiencing housing insecurity. The 2024 Rockefeller report on a proposed formula update addressed each component of the formula separately, providing a menu of options for the Governor and Legislature. A critical piece of this update is the Regional Cost Index (RCI), which has not been comprehensively revised since 2007. While Westchester County’s index was slightly increased in the last budget (from 1.314 to 1.351), the RCI overall remains outdated and fails to reflect actual costs of living and wages, ultimately leaving many high-cost districts like New York City and Yonkers inequitably funded. Updating the RCI as recommended by the Board of Regents and Rockefeller report will be key to ensuring fairer and more accurate Foundation Aid funding.
Any changes to the formula must make sure that no district is adversely impacted by a loss of funding and implementation must be carried out in ways that do not harm students, especially not further harming students impacted by federal budget cuts this past year. For example, in FY2025, we saw revisions to the allocation of Foundation Aid insufficiently accounted for the depth of student poverty in certain high-cost-of-living districts, including New York City, and for the high concentration of English learners and costs of running the nation’s largest and most diverse public school system. All changes must also take into account how each component affects the final output of funding. AQE is in full support of the recommendations that the Board of Regents made in their State Aid proposal for 2025-26, as revising the formula and ensuring adequate funding is crucial for FY2026.
Pass the Solutions Not Suspensions Bill (A118/S134)
Schools must use proven alternatives to suspension that correct misbehavior and keep kids in the classroom. The state budget should invest in training for educators and school personnel, while also ensuring full Foundation Aid funding is in place to support the behavioral, emotional, and academic needs of all students.
End Jim Crow Education in East Ramapo
The state budget should incorporate reforms contained in Bill A10407 to empower public school families, fix crumbling infrastructure, hire bilingual educators, ensure access to quality classroom instruction and materials, and end the systemic racism embedded in its school governance and finances.
Invest in Community Schools
A positive school climate begins with investments in strategies that work. Community schools are a proven-to-work strategy that helps foster positive school climate and student success. Many school districts are implementing this strategy to bring resources and services to schools that address students’ needs. The state must make sure that community schools have a separate funding stream in the form of categorical aid, so that school districts can implement and maintain community schools effectively.
Get Involved
AQE exists because people like you care about doing what is right for New York’s children, our schools and our communities. Here are some ways to get involved: