ALBANY, N.Y. (NEXSTAR) — The New York State enacted budget boosts school aid statewide, altering the foundation aid formula that allocates money to districts. It sets a new record at $37.6 billion for K–12 public schools in fiscal year 2025—about $14,000 per pupil—representing an increase of $1.7 billion over fiscal year 2024.

Foundation Aid—the main state funding program—is $26.4 billion, up $1.4 billion over last year. That formula covers expenses like teacher salaries and building maintenance. Overall, districts across the board are supposed to get more money than last year, with the budget guaranteeing each a 2% minimum increase in aid.

The budget bills set aside millions for teacher salaries in several cities:

The budget amends the state education law, codifying that foundation aid “shall equal the greater of total foundation aid or 1.02 [times] the foundation aid base.” The cap on the state-share ratio—the maximum portion of a district’s Foundation Aid that the state pays—was also raised to 93%, up from 91% previously. That means a given district is supposed to spend only 7% at most of its own Foundation Aid formula amount.

But does updating the formula for cost of living do enough for high-need students, like those in temporary housing, foster care, or special education? It’s supposed to help all of New York’s 2.7 million schoolchildren, with targeted funding for those needier districts. For example, the state will increase the English language learner factor (from 0.50 to 0.53) and boost the regional cost index for wealthier areas. New York will also use more up-to-date Census data instead of older poverty data to dole out the funds, counting “economically disadvantaged” students instead of just those eligible for free or reduced-price meals.

Speaking of discounted meals, the budget also expands Universal Free School Meals to every public, charter, and nonprofit school student in New York for fiscal year 2025. That’s a $340 million price tag for free breakfast and lunch on school days—a $120 million increase over last year—roughly $2.25 per meal paid directly by the state.

New York City schools will see a $539 million increase under the new plan, according to legislators, raising their Foundation Aid to $10.46 billion. Still, the budget “will result in New York City Public Schools receiving hundreds of millions of dollars less from the state than they otherwise would have,” said Kim Sweet of Advocates for Children of New York. She warned, “Our schools still need a modern formula that reflects real costs in our city.”

The budget also includes education provisions like a statewide dual enrollment program policy, transportation expense caps, and special education class size limits. And it requires big districts to set aside portions of their Foundation Aid for magnet schools or other similar options that promote racial and economic diversity. Those specific reserves include:

Related video—Rockefeller Institute recommends changing New York’s public school funding formula after 17 years:

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