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.
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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 Foundation Aid formula has not been holistically revised to accurately capture the needs of students in the 21st Century. 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 FY2025 (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 ensure all districts do not experience funding cuts or receive less funding than current law prescribes, especially in light of harmful federal funding cuts. For example, in FY2025, the change in the way poverty was measured underestimated the number of students in poverty in New York city, a change that resulted in reduced foundation aid for the district. 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.
Implement Universal Pre-Kindergarten
New York State has made significant strides in expanding full-day pre-K to all four-years-olds and, in some communities, for three-year-olds. But some critical challenges remain, as the funding system that supports some of these districts has been frozen for more than a decade. Districts must patch together funding from state, federal, and local sources each year just to maintain programs. Many of the districts that led the way in offering pre-K, notably many in high-poverty areas, have not seen meaningful increases in their state pre-K rates in decades.
Longstanding funding gaps have also weakened community partnerships that are central to how New York delivers pre-K. Districts are required to set aside part of their funding to partner with local community-based early education programs, which help reach more families and offer learning and care that families need. Yet these community-based programs often receive less per child than public school based programs, making it difficult to pay teachers adequately and sustain quality across settings.
New York must fix these structural flaws to ensure stable and equitable access to pre-K statewide. The state can meet this need in two essential ways. First, by tying pre-K funding to each district’s K-12 Foundation Aid rate, so that funding automatically keeps pace with costs and inflation in high- and average-needs districts. And second, by raising the minimum per-pupil amount and establishing a mandatory minimum local contribution for wealthier, low-needs districts, with regular reviews to adjust for inflation over time. Together, these changes would replace a patchwork system with one that is more predictable, equitable, and better aligned with the state’s broader K-12 funding framework.
Research consistently shows that Pre-K, along with early care and learning programs, yields some of the highest returns of any public investment – addressing inequality, supporting working families’ ability to work, and setting children on a path to long-term well-being. For every dollar invested in high-quality early education, the return is between $3 and $7 in long-term savings and benefits through stronger academic outcomes and reduced spending on special education, remediation, and incarceration – costs that the state currently bears at high levels but that are significantly reduced when children have access to quality, full-day pre-K.
Pass the Solutions Not Suspensions Bill (A118/S134)
Schools must use proven alternatives to suspension that correct misbehavior and keep students in the classroom. The state must invest in training for educators and school personnel, and ensure full Foundation Aid funding is in place to support the behavioral, emotional, and academic needs of all students.
Total Funding Ask: $50 million
Support Sustainable 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 ensure that community schools have a dedicated funding stream in the form of categorical aid so school districts can implement and maintain community schools effectively.
NYC School Governance
An integral part of our work on equity is elevating the voices of parents and ensuring meaningful engagement in the education process, including school governance. AQE supports a clear and planned phase-out of Mayoral Control. Since Mayoral Control was enacted in New York City, every Mayor’s leadership style has continuously shut out the voices of parents, students, teachers, and taxpayers, while causing shifts in the direction of the Department of Education so frequent that policy initiatives don’t last long enough to be fully implemented or properly evaluated.
We will continue to advocate for an inclusive process that intentionally generates new ideas for a reimagined school governance system for NYC. In the meantime, we recommend a one-year extension of mayoral control with two critical amendments. Reducing the number of mayoral appointees and repealing 2590-B.a.1.D to allow members of the Panel for Educational Policy to choose the Chair. These changes would create a more balanced governance structure during the transition period, while the broader redesign is underway.
Lastly, the NYC school governance issue does not belong in the budget process. We urge you to decouple the renewal process from the state budget and prevent it from being used as a bargaining chip.
End Jim Crow Education in East Ramapo
The state budget must incorporate reforms from Bill A10407/S09833 to empower public school families, repair 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.
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: