Hochul, NYS lawmakers agree to revise school aid formula next year

ALBANY — Gov. Kathy Hochul said Thursday that she and legislative leaders agreed to change next year the formula that drives $35 billion in funding to schools and greatly impacts local property taxes.

Hochul, however, didn’t say if she has dropped her proposal to end the “hold-harmless” practice for school aid in this year's budget. Hold-harmless has for years guaranteed school districts an automatic increase in state aid each year. Dozens of school districts, including several on Long Island, stood to get a lesser increase in state aid than anticipated if Hochul's proposal is approved by the State Legislature in the budget.

But Hochul for the first time supported an overhaul of the school aid formula next year. The legislature has proposed the effort as an alternative to ending the hold-harmless practice. Legislators, backed by their local school districts, said Hochul’s proposal is too abrupt and would dramatically hurt school budgets now being crafted.

“We talked about putting a process in place so that by this time next year, giving everyone the notice and the warning they all asked for, there will be a different formula,” Hochul said Thursday. She said revising the formula “puts us in a much better place” to fund schools fairly, based on need as determined by a more accurate and updated school aid formula.

The current formula uses some outdated measures, such as school enrollment and community wealth, to determine how much state aid school districts need. Some of the figures used are more than a decade old.

Hochul said budget negotiations are expected to continue through the weekend for the 2024-25 fiscal year budget that was due April 1.

“The end is near,” Hochul said.

On Thursday the Senate and Assembly approved her “extender” that continues to fund state government through Monday, when another extender could be passed. The extenders temporarily continue spending under the past year’s levels until a new budget is adopted.

There was no immediate comment from the Democratic majorities of the Senate and Assembly on Hochul’s comments.

Hochul also said there is agreement on a “very comprehensive housing bill,” but she would provide no details. Hochul has proposed to increase housing statewide to contend with an affordability crisis. She wants to help developers erect new housing, including in communities that have blocked housing projects for years through local zoning laws.

Another big issue for New Yorkers involves proposals to spend millions of dollars more to expand child care and universal prekindergarten. Proposals would provide higher wages to contend with a workforce shortage in child care and tax credits and subsidies to help New Yorkers pay the rising cost of the service.

The final budget, which may exceed $233 billion, also is expected to arrive at a consensus on several measures related to combating global warming. The deal could impact how much New Yorkers will pay for the transition to a low- or zero-emissions economy and away from fossil fuels that contribute to climate change.

Leaders have argued that a good budget is better than an on-time budget, but late budgets do carry a cost. For example, a late agreement on the amount of school aid puts most local school districts in a bind as they prepare their budgets and present them to voters in the district.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.