2026-2027 State Budget Proposal and Education Priorities

SUMMARY

Issue for Decision

Should the Board of Regents approve the 2026-2027 proposal reflecting the

Regents' budget and legislative priorities? Reason(s) for Consideration

Review of Policy.

Proposed Handling

This issue will come before the Full Board for action at its December 2025 meeting.

Procedural History

Each year, the Board of Regents, through its State Aid subcommittee, develops a proposal outlining its budget and legislative priorities to support education, higher education, the professions, cultural education, and adult education programs, as well as services/supports for individuals with disabilities. The 2026-2027 conceptual proposal was discussed by the Board at the October and November State Aid Subcommittee meetings. The 2026-2027 Regents State Aid and Budget Proposal (Attachment A) is attached.

Background Information

For the budget development cycle for the 2026-2027 State Fiscal Year, the Board of Regents has identified several critical needs that must be addressed. The

Board of Regents makes policy for New York's P-12 schools, colleges and universities,

proprietary schools, libraries, adult education, and vocational rehabilitation programs for adults with disabilities. At their September 2025 meeting, the Board began the budget development process with discussions about the needs of students, schools, libraries, THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

BR (A) 4 - REVISED

The Honorable Members of the Board of Regents Christina Coughlin 2026-2027 Regents Budget and Legislative Priorities December 4, 2025 TO: FROM: SUBJECT: DATE: AUTHORIZATION(S):

and individuals with disabilities across New York. At that meeting, they held a high-level conversation about key priorities for education across the state. In the October and November 2025 Regents meetings, the State Aid subcommittee of the Board of Regents, with the Co-Chairs of the other committees, discussed emerging needs and the potential budget and legislative initiatives in more detail. Board members considered various approaches to achieving their goal of creating an educational system that prioritizes diversity, equity, and inclusion for all. The Board has developed a streamlined proposal to expand opportunities to learn and work for all New Yorkers.

Related Regent's Items

This proposal reflects discussions held by the Board's Subcommittee on State Aid at the September, October, and November 2025 meetings of the Board of Regents. Although there were no Regents items prepared, presentation materials for those discussions are linked below: September 2025: 2026-2027 Regents Budget and Legislative Priorities Development Process (https://www.regents.nysed.gov/sites/regents/files/SA%20-%202026- 2027%20Regents%20Budget%20and%20Legislative.pdf) October 2025: 2026-2027 Regents Budget and Legislative Priorities (https://www.regents.nysed.gov/sites/regents/files/SA%20-%202026- 2027%20Regents%20Budget%20and%20Legislative%20Priorities.pdf) November 2025: 2026-2027 Regents Budget and Legislative Priorities (https://www.regents.nysed.gov/sites/regents/files/SA%20-%202026- 2027%20Regents%20Budget%20and%20Legislative%20Priorities_0.pdf)

Recommendation

It is recommended that the Board of Regents take the following action: VOTED: That the Board of Regents adopt the attached as their 2026-2027 State Aid and Budget Proposal.

Timetable for Implementation

The Regents State Aid Proposal is effective immediately. The Regents State Aid Proposal is a recommendation to the Governor and the Legislature. The Governor will issue budget recommendations in January and ask the Legislature to approve a State budget by April 1.

Attachment A

State Fiscal Outlook

This is a time of significant uncertainty in the state and the nation's economic outlook. On one hand, when it published the Mid-Year Update to the FY 2026 Enacted State Financial Plan, the New York State Division of Budget reported better than expected state revenues. On the other hand, the authors urged caution. "Despite the present positive outlook, the State continues to face economic risks and fiscal challenges stemming from recent Federal legislation and policies, a softening labor market, unpredictable tariff policies, and concomitant concerns about the potential for a trade war, and the inherent risk of stock market concentration in large technology companies. Other headwinds that exacerbate multi-year fiscal risks and uncertainty include the ongoing implications of sustained trends of elevated enrollment and rising costs in public health insurance programs, and Federal spending reductions that are expected to negatively impact health care delivery and coverage, social services, public safety, climate change, and clean energy programs."

We can expect the state's fiscal policymakers to proceed with some caution as they try

to continue to navigate these challenging times. However, as the Division of Budget also reported, the "economic outlook has now improved significantly… reflecting strong wage growth, continued stock market strength fueled by expected growth in the

technology sector, and slower than expected impacts from the tariffs."

The state continues to project strong growth in school aid expenditures, budgeting approximately $1.2 billion in growth in the next school year and approximately $1.4 billion in the following school year, as seen in the following table.

Budget and Legislative Priorities

Education building and annex repairs ........................................... $14.8 million Higher Education Opportunity Program ......................................... +$4.9 million Cultural Education Center equipment and renovations .................... $1.5 million Allow districts to provide preschool special education services ........... Zero cost Science and Technology Entry Program ....................................... +$2.2 million

School for the Blind - safety and stability ...................................... $25.5 million Postsecondary success of students with disabilities ........................ +$2 million Collegiate Science and Technology Entry Program ...................... +$1.6 million NY Inspires: Standards and Technical Assistance ........................... $2.6 million

School for the Deaf - HVAC and maintenance ............................... $8.5 million Improve monitoring of proprietary schools ......................................... Zero cost Liberty Partnership Program ......................................................... +$2.5 million NY Inspires: Educator Professional Development ............................ $2.5 million Revenue Stabilization Fund ............................................................. $12 million New School at St. Regis Mohawk ................................................ $115.1 million Supporting secondary students with disabilities ............................ +$2.0 million Language change to enable contracting ............................................ Zero cost College in High School Opportunities and P-TEACH ................... +$15.9 million Summer School for the Arts ............................................................. +$800,000 Tuscarora Nation School - deferred maintenance ......................... $10.7 million Foster Youth College Success Initiative ........................................... +$1 million State funds supporting special education through age 22 Funding Juvenile Justice Planning and Development (year 1) ....................... $1.5 million Program Library Construction Aid ................................................................... +$6 million Onondaga Nation School - expanded footprint .............................. $51.2 million Sustaining Teach.org ...................................................................... $1.3 million Tuition Rate Growth for Approved Special Education Programs Special Education and Adult Career and Continuing Education Request Shared Services Innovation Fund ..................................................... $10 million Capital Requests P-12 Education Committee Higher Education Committee Cultural Education Committee Services (SE-ACCES) Committee

Agency-Wide Priorities

Capital Needs: Except for the Cultural Education Center, the requests for the buildings

below all include an amount for additional annual preventive maintenance funding. We want to promote efficiency by extending equipment and building lifespans.

Education Building and Annex ($14.8 million): Last year, the Department received a

$20 million installment on an estimated $34.1 million in work in the Education Building. The original $34.1 million request was comprised of work on the exterior walls and columns, the roof and skylights, and replacement of an elevator, which is essential for the maintenance of building heating and ventilation equipment. It is probably more cost- effective to do all of the external portions of the project as a single, coordinated, and sequenced effort, rather than as individual projects. We are also forced by employee safety concerns around lead paint to proceed with roof and skylight repairs first, despite having been warned by the State Historic Preservation Office that the damage to exterior walls could accelerate and cause more long-term damage to the building. Thus, the recommendation is that the Governor and legislature provide the remaining funding so that all the exterior work can be completed as a single project. We also request funding for the replacement of a critical elevator that allows maintenance of the

Department's HVAC systems.

Cultural Education Center ($1.5 million): Because major work is already planned for

the Cultural Education Center, the capital request for the Cultural Education Center focuses on major equipment purchases and minor renovations that could probably be managed through normal operating expenses if the structural finance issues caused by the failure to adjust the fee for over 20 years were addressed. These include shelving and other storage systems for fragile documents, conservation-friendly display cases, security technology upgrades, internet capacity upgrades, energy-efficient lighting upgrades, and visitor counting equipment.

State-Owned School Buildings ($211 million):

• New York State School for the Blind at Batavia ($25.5 million): This campus
  is in dire need of state investment. Multiple buildings on the campus have major water infiltration due to roof leaks and failures. In addition, the cooling system in the main building, which is used as both instructional and residential space, is not functional. This forces the school to rent an expensive replacement system. The non-functional system has leaked toxic material into the soil near an exit door in a space that was once used for students' outdoor activities, but which can no longer be. This situation has also prevented the replacement of inadequate sewer lines, which cause backups and flooding. One otherwise beautiful building has been so damaged by water intrusion that it can only be entered while wearing personal protective equipment and needs demolition. There are other needs as well.

• New York State School for the Deaf at Rome ($8.5 million): This campus
  faces less severe challenges, but the main classroom building has an older, inefficient heating system and no air conditioning, despite the recent classroom

temperature legislation. Other parts of the campus require investment. This would include windows, walkways, and other maintenance tasks.

• St. Regis Mohawk Nation School at Akwesasne ($115.1 million): This school
  building needs considerable updating, but it is in a flood zone. The Nation has purchased land away from the flood zone on which it hopes to have a new school building and early learning center to create a child-centered campus. This request amount is a net amount, which deducts the amount remaining from previous appropriations from the total estimate provided by the NYS Office of General Services.

• Tuscarora Nation School ($10.7 million): Several years ago, the Board
  successfully advocated for the capacity to do Building Condition Surveys (BCS), which are required for all public school buildings, at its own state-owned campuses. The BCS for the Tuscarora Nation School yielded many smaller recommendations due to deferred maintenance. While progress has been made in recent years, more work is needed. This request would address the findings.

• Onondaga Nation School ($51.2 million): The existing space at this school
  needs upgrades to the HVAC system, additional funding for an ongoing window replacement project, interior window shades for use during lockdown situations, and a new public address system. There is also a request for an expansion of the building footprint to create more spaces for related services, such as speech, physical therapy, occupational therapy, and a larger gymnasium.

Office of P12 Education

The Board of Regents' State Aid and Budget Proposal for the 2026-2027 school year is

focused on creating the opportunity for all students to participate fully in the new graduation standards and to gain and demonstrate knowledge in deeper ways. This priority runs throughout this document from the recommendations of the Committee on P12 Education, Special Education and ACCES, and Cultural Education, which seek to provide the Department, our educators, and the Office of Cultural Education the resources they need to do the NY Inspires work. The School Aid proposal seeks to provide the resources that school districts need to begin to prepare their students to meet the new requirements related to NY Inspires and their next steps in life.

Funding to Implement NY Inspires/Blue Ribbon Commission on Graduation Measures Changes ($5.1 million): Internal: Standards and Technical Assistance ($2.6 million): To support standards

alignment required for the NY Inspires changes and the implementation of new instructional requirements in personal financial education and climate education, the Department has requested support for additional staffing and consulting services. Within this total request, the Department has also asked for funding for the creation of six technical assistance centers around the state. These centers would support districts as they implement the new graduation requirements, as we expect a large volume of requests for information during the early years of the new standards.

External: Educator Professional Development ($2.5 million). Similarly, the Board of

Regents has identified a need for professional development for educators. NY Inspires will ask our students to demonstrate their knowledge in new ways. This will place new demands upon our educators. They will need to learn how to provide instruction and assess learning rigorously in this more complex environment. This $2.5 million would support new professional development along two streams: support for teachers as they prepare to challenge their students in more holistic ways, and support for educators and educational leaders as they seek to measure that new learning.

College in High School Opportunities ($15.9 million): In her 2025-2026 Executive

Budget, Governor Hochul proposed an expansion of opportunities for high school students to acquire college credits. This proposal was the result of a strong

collaboration between the Department and the Governor's staff to develop a program

that would ensure that students have the opportunity to make meaningful progress toward college degrees (at least 12 transferable college credits) while they are still in high school, particularly those students whose families do not have the resources to support their college work. While it is not fully in place, there has been much interest in the program. Thus, the Board recommends expanding the College in High School program by another $10.9 million, to a total of $20 million, so that more students can participate. Similarly, the Board recognizes that a teacher-specific P-TECH program (P- TEACH) could help address chronic teacher shortages in certain districts and fields of study, as well as encourage students who are more representative of our student body to enter the teaching profession. Thus, the Board recommends the creation of a $5.0 million P-TEACH program that can begin to develop our next generation of teachers.

Juvenile Justice Hybrid Programming Planning and Development ($1.5 million for year 1): The Board recognizes that there are significant weaknesses in the current

educational programming provided for young people in juvenile justice settings. It proposes creating a statewide hybrid high school with the Office of Children and Family Services (OCFS) for these students. To promote equity between program sites, this new school would be state-funded and budgeted to provide support for on-site staff and the costs of providing other coursework online. Operating costs would be covered in a manner that parallels current funding mechanisms for school districts. As a first step, the Board recommends the allocation of funding that would support some initial hires for the school (a superintendent, an instructional lead, and a finance/operational lead) and the engagement of a consultant with expertise in this space who would support the program design. We anticipate building the school program in future school years, so that the school will be operational at the beginning of the 2028-2029 school year.

Shared Services Innovation Fund ($10 million): This fund will provide start-up

funding for NY Inspires-aligned shared projects that districts have identified through the formal regional initiative development process conducted last year.

Special Education and Adult Career and Continuing Education Services (SE-ACCES)

Providing a Free and Appropriate Education (FAPE) to Students with Disabilities until Age 22: The courts have confirmed that schools have a responsibility to provide

educational services to students with disabilities who have not earned their high school

diploma until their twenty-second birthday. State aid statutes only provide aid until the twenty-first birthday, so the state currently provides no support to school districts in this work. Recognizing this creates a new and significant cost for school districts, the Board proposes that the state change its statutes to make these students eligible for state aid. There is no cost estimate here because the number of these students who have been served and will be served is not clear. It is also worth noting that, before the court decisions that made clear these students should be served by the school system, many of these students in residential settings were cared for by another state agency, the Office for People with Development Disabilities (OPWDD). Since this would have been a state cost, from a state general fund perspective, the new school aid costs would be partially offset by the reduction in costs to OPWDD.

Postsecondary Success of Students with Disabilities (SWD) ($2 million increase to $6 million): Students with disabilities enrolled in degree-granting colleges and

universities may need supports like those they received in high school to be successful. This is an investment in ensuring educational success that will unlock new employment opportunities for these individuals. Additional funds would allow postsecondary schools to enhance the supports and services they provide to their enrolled students with disabilities, including:

• Supplement and expand existing supports and accommodations for students
  with disabilities (SWDs);

• Create college preparatory programs to assist incoming SWDs in transitioning
  to college and prepare them to navigate the campus facilities and systems;

• Provide full- and part-time faculty and staff at SUNY, CUNY, and other private
  and independent degree-granting institutions of higher education (IHEs) with training in how to better serve students with disabilities; and/or

• Improve the identification process of SWDs and enhance data collection
  capabilities at SUNY, CUNY, and other private and independent degree- granting institutions of higher education.

Statutory Authorization for School Districts to Provide Special Education Pre- kindergarten Services: Although under state and federal law, school districts are

programmatically responsible for the provision of a free appropriate public education (FAPE) in the least restrictive environment (LRE) to preschool students with disabilities. State law currently requires school districts to apply to the Department for approval prior to offering preschool special education programs or services. School districts have cited the application process as overly burdensome, considering the regulatory responsibilities for which school districts are accountable. The separate application process is also inconsistent with the requirements of the Individuals with Disabilities Education Act (IDEA) for ensuring the provision of FAPE by local educational agencies (LEAs). School districts do not have a similar process for serving students with disabilities in grades K-12. Therefore, the Board proposes that the New York State Education Law §4410 should be amended to deem school districts as approved to provide all preschool special education programs and services without separate approval. School district programs will continue to be governed by all program and fiscal regulatory requirements applicable to the provision of preschool special education programs and services. While the NYSED Office of Special Education has developed a

streamlined application for district preschool special education program approvals in response to an Office of the New York State Comptroller (OSC) audit, eliminating the application requirement will provide school districts with flexibility and administrative relief.

Statutory Change to Eliminate Barriers to College for Students with Disabilities:

The Board of Regents requests that grants to colleges for vocational rehabilitation (VR) services be deemed exempt from Section 112 of the State Finance Law. The Department implements a federal vocational rehabilitation program for individuals with disabilities. The federal program requires that the Department work with individuals to develop potential careers and identify the pathways to acquire the credentials needed for those careers. This must be done in a timely manner, so as not to delay the

individual's pursuit of the new career. If the selected career pathway requires college,

the Department contracts with an institution of higher education (IHE) to provide the services. Unfortunately, the state contract process, as required by Section 112 of the State Finance Law, generally takes 8-10 months. That leaves the individual waiting for nearly a year for services to which they are entitled. Some out-of-state IHEs decline to

participate in New York's somewhat burdensome process at all. This situation violates

the expectations of the federal program, but more importantly, it denies these individuals the ability to make progress according to their plan. Since Department staff provide extensive oversight of these agreements with the IHEs, the Board of Regents proposes that these contracts be made exempt from Section 112 requirements.

Improved Monitoring of Proprietary Schools to Protect Public Health and Prevent Closures that Disrupt Students' Lives: No Cost (Appropriation Language Request)

Since 2020, the Department has seen an increase in the number of for-profit proprietary schools offering Allied Health programs that provide training in direct patient care roles such as Home Health Aide, Personal Care Aide, Nurse Aide, EKG Technician, Diagnostic Medical Sonographer, and Phlebotomist. The Department has also seen an increase in the number of proprietary schools that are out of compliance with training and salary requirements for direct care workers. The Bureau of Propriety School Supervision (BPSS) has had to significantly increase its investigations into schools offering programs in the Allied Health fields. For example, a risk-based investigation found that 31% of investigated schools were not in compliance with regulations established by NYSED and the Department of Health (DOH). Consequently, 13% had their license renewal applications denied. These schools were purporting to train students who would be serving patients shortly afterward. To protect public safety, the Department must ensure that private career schools are training direct care workers properly, so that New Yorkers receive health care services from skilled health professionals. The Board of Regents recognizes that schools not in compliance with state regulations or operating without a license are a danger to public safety. To protect the public, the Department must have sufficient staff to oversee schools. Four (4) additional staff who would focus on Allied Health Programs are needed. These staff would work in collaboration with DOH and other state agencies to align programs with industry and regulatory standards, ensure that training curriculums comply with requirements, and increase monitoring of schools.

Understanding that new general fund support may be difficult at this time, the Board of Regents requests that the law allow that if the Tuition Reimbursement Account's (TRA) funds exceed $2,500,000, funds from that be transferred to BPSS, up to a maximum of $500,000 within a State Fiscal Year. The TRA account is funded by revenue from school fees and fines associated with proprietary school licensing. Currently, the TRA account contains $6,597,765.65. It continues to grow. For example, $624,485.87 in revenue was received in this account in SFY 2024-25, while only $17,700 was expended. At present, this funding can only be used to reimburse students for lost tuition when their school closes and expenses related to scanning student records. Over the prior 10 years, the total expenditure from this account for tuition reimbursement was $1,338,179.08, with the highest single-year amount at $315,592.65. The proposed transfer will provide the funding needed to increase oversight of private career schools and ensure that allied health programs are training highly skilled workers. Sufficient funds will remain available to reimburse students impacted by a school closure. Proper oversight may also prevent closures and

disruption to students' lives and career plans that result.

Higher Education

Increase of 10% for each higher education access and opportunity program (increase of $11.2 million):

• Higher Education Opportunity Program (HEOP). HEOP provides a broad
  range of services to New York State residents who, because of educational and economic circumstances, would otherwise be unable to attend a postsecondary educational institution. Students in HEOP have the same retention rate as all other students in participating institutions, a sign of the tremendous efficacy of the program. An additional $4.9 million would allow HEOP to have an impact on even more students.

• Science and Technology Entry Program (STEP): STEP increases the number
  of economically disadvantaged students and others prepared to enter college, and improves their participation rate in mathematics, science, technology, health- related fields, and the licensed professions. STEP provides core subject instruction, training, counseling, enrichment, and assists with college preparation and application. An additional $2.2 million will expand the services and supports for eligible students.

• Collegiate Science and Technology Entry Program (CSTEP): CSTEP
  supports economically disadvantaged students and others pursuing professional licensure and careers in mathematics, science, technology, and health-related fields at the college level. An additional $1.6 million will reach more students.

• Liberty Partnership Program (LPP): LPP offers comprehensive pre-collegiate
  and dropout prevention programs and services to youth across the state. An additional $2.5 million would allow for a wider program reach.

Foster Youth College Success Initiative (increase of $1 million): This program

provides additional services to expand opportunities for Foster Youth through existing postsecondary opportunity programs at the SUNY (Education Opportunity Program), CUNY (Search for Elevation, Education and Knowledge Program, and College Discovery Program), and other not-for-profit degree granting higher education institutions with opportunity programs for foster youth. Services include supplemental financial aid for foster youth, which may include the cost of tuition and fees, books, supplies, transportation, and other expenses determined by the Commissioner to be necessary for such foster youth to attend college. Funds can also be used to conduct a summer college preparation program for foster youth who will be enrolled and attending as first time full-time students, in order to prepare them to navigate on-campus systems, and provide preparation in reading, writing, and mathematics for foster youth who need it; and advisement, tutoring, and other academic assistance for foster youth who are or will be enrolled and attending institutions awarded this funding.

Enhanced Supports and Services for Students with Disabilities for Postsecondary Success (increase of $2.0 million): The Higher Education Committee supports the

expansion of this program, which is described more extensively in the Special Education and ACCES Committee section.

Sustaining Teach.org ($1.3 million): Teach.org's mission is to end the statewide

teacher shortage and help talented people from all backgrounds enter the profession. This organization partnered with the Department to create and maintain a proprietary, state-customized teacher recruitment system, including an online platform for prospective teachers. The TeachNY website provides information about teaching, teacher preparation programs, and financial aid and 1-on-1 coaching sessions. There have been more than 80,000 sign-ups since the website launched more than 1.5 years ago. To maintain this service, the state must provide a recurring allocation of $1.29 million for Teach.org, and increase it 3% each year thereafter. If the legislature does not establish a recurring allocation for Teach.org, NYSED may not be able to sustain TeachNY and lose this critical tool for addressing the teacher shortage.

Office of Cultural Education Program

Revenue Stabilization (General Fund appropriation of $12 million):

The Office of Cultural Education (OCE)--encompassing the State Museum, Library, and Archives--has faced a persistent structural funding shortfall that jeopardizes its ability to

carry out core operations and responsibly steward the State's vast collections. For 15 of

the past 17 years, OCE has operated in a deficit because it relies on the Cultural Education Fund (CEF), which is financed by a Real Estate Deed Transfer Fee that has remained stagnant and has not been adjusted for inflation since 2002. In addition to this flat fee structure, real estate transactions have slowed, resulting in declines in annual revenues, leaving the fund unable to keep pace with essential operating needs. Without intervention, the deficit is projected to reach $11-12 million by the end of this fiscal year, and $18 million by the end of FY 2027. Despite sustained cost controls, staff reductions, and deferred maintenance, these conditions have limited exhibitions and public programs, constrained partnerships, and weakened the Museum, Library, and

Archives' capacity to serve the public. With the impending loss of federal support for

library services, this weakness could soon extend to a reduction in technical assistance

services to local libraries across the state. It has also impacted the State Museum's

mission to conserve, protect, and teach the history of the State of New York.

New York State Summer School for the Arts & Scholarships ($800,000 increase to $2 million): The New York State Summer School for the Arts (NYSSSA) will provide

residential programming and scholarships to New York State students interested in the arts. The additional funding will permit the Department to reintroduce and expand artistic disciplines that were previously offered, providing students with a broader array of creative opportunities to explore. The Department would also plan to provide more financial aid and scholarships to ensure that more students can participate, regardless of their economic background. With expanded funding, more students from diverse backgrounds would have the chance to participate, ensuring the program nurtures the widest possible range of young artistic talent. Or, we may increase the geographic reach of the program by hosting sessions in additional regions, particularly underserved and remote areas, to make the program more accessible for all students.

Library Construction Aid ($6 million increase to $50 million): To strengthen library

capacity to meet community needs and maintain safe, accessible facilities, the Regents recommend increasing Library Construction Aid. Any public or association library or public library system chartered by the Regents or established by an act of the Legislature is eligible to apply for these funds, which support approved costs for the acquisition, construction, renovation, or rehabilitation of library buildings, as well as broadband and technology infrastructure projects. An increase in this appropriation will allow more libraries to address critical capital needs, modernize aging facilities, expand digital connectivity, and ensure that library spaces remain fully accessible and responsive to the educational, cultural, and technological needs of New Yorkers. Office of Professions The Office of Professions requests that it be granted sufficient appropriation authority to do its work and that these funds not be swept. This Office continues to work on a major modernization of its licensing system. These funds should continue to be made available.

School Aid Recommendations

School Aid Enhancements to Support NY Inspires

Foundation Aid (additional $1.0 billion):

Under current law, Foundation Aid will increase by $713.5 million. This budget proposal would make three enhancements that would bring the overall funding increase to $996.84 million. These enhancements are:

1. ELL Weight at 0.60. Foundation Aid provides additional funding to districts serving English Language Learners. The "weight" is intended to reflect the

incremental cost of providing the services and supports needed for English language learner (ELL) students to be successful. Last year, the legislature and the Governor updated the ELL weight from 0.50 to 0.53. Specific research into

New York State's Foundation Aid formula estimated the incremental ELL weight

within Foundation should be 0.61 (Gutierrez and Yinger 2017). Recent research

Regents 2026-Year-to-year 2025-2026 School Year 2027 Request Change School Aid Program

Other General Support for Public (in millions) (in millions) (in millions) 319.11 322.27 3.16 Instructional Materials Aids 255.03 256.49 1.45 General Purpose Aid Support for Students with Disabilities BOCES and Special Services Expense-Based Aids Transportation Aid Current Other Grants and Programs Total GSPS 27,760.49 37,501.09 1,000.45 1,123.77 1,223.55 1,680.49 6,262.40 2,734.15 28,760.95 38,624.86 -103.15 1,120.40 1,795.09 114.59 6,369.67 107.27 2,890.75 156.61 319.11 322.27 3.16 Other General Purpose Aid Special Services Aid Textbook Aid 333.94 307.70 162.09 14.53 336.09 322.23 162.31 2.16 0.22 Public Excess Cost Aid -122.28 710.49 588.22 Private Excess Cost Aid Supplemental Excess Cost Aid BOCES Aid Hardware & Technology Aid Library Materials Aid Software Aid Building Aid 1,372.79 3,528.26 1,472.85 100.06 3,478.92 508.75 -49.34 19.13 34.08 17.03 41.83 527.87 0.00 0.70 0.45 0.08 4.31 34.78 17.49 41.91 4.31 Foundation Aid Prekindergarten Grants Schools (GSPS) 26,357.61 1,068.95 27,354.45 996.84 1,070.40 1.45

suggests aggregate weights between 1.3 and 1.6 (Srikanth and Baker 2022). To reflect this research, the Regents propose updating the ELL weight to 0.60.

1. New 0.12 Weight for students experiencing homelessness. The current formula recognizes student financial need through the Economically Disadvantaged count and Small Area Income Poverty Estimates. Neither of these figures reflects a direct analysis of family resources and costs, and both serve as proxies, not actual measures, of student needs. Since our data suggests that students experiencing homelessness struggle even more than their other economically disadvantaged peers, the Board proposes additional funding

- focused on these students. The Department already collects a count of these

students, using the federal McKinney-Vento definition: those students who lack a fixed, regular, and adequate night-time residence. Families both below and above the poverty line may find themselves lacking a fixed, regular, and adequate nighttime residence, and children experiencing homelessness are especially vulnerable to educational disruption. The Federal McKinney Vento Act provides certain rights for these students, but it does not include adequate funding for districts to do the work - potentially creating a disincentive to identifying students. The New York City School District reflected this need in its Fair Student Funding formula in 2024 with a weight of 0.12. To support the funding provided by New York City Public Schools and extend the same benefit to all districts serving this vulnerable population, the Regents propose that the state adopt the same approach and include these McKinney-Vento students with an additional 0.12 weight within "the extraordinary needs" count.

1. Minimum increase for all districts. The cost of maintaining services changes each year in all school districts. These costs include health benefits, retirement contributions, special education services, transportation contracts, and mandated services. Many of these cost drivers are largely outside the control of districts. Additional state and local resources are necessary to maintain existing levels of educational services. The Regents propose a means-adjusted minimum increase equal to 2% of Foundation Aid in the base year, adjusted by the State Sharing Ratio to ensure larger increases in districts with fewer local resources. Taken together, these changes reflect a balanced approach that recognizes both the fiscal constraints facing New York State and the need to maintain equitable educational opportunities statewide and begin to respond to the NY Inspires work. Additional updates to the formula will be needed in future years to continue this process.

Maintaining Parity of Access to CTE in Non-component Other Districts ($10.1 million): Students in non-component school districts should have equitable access to

high-quality Career and Technical Education (CTE) programs comparable to those offered through BOCES. Under current law, BOCES programs benefit from three years of statutorily established aid increases to encourage a greater utilization of these services. To maintain parity for districts that are not components of BOCES, the

Regents recommend ongoing adjustments to per-pupil aid amounts in special services aids. Specifically, we propose increasing the career education aid per pupil maximum

from $4,100 to $4,300, mirroring last year's increase from $3,900 to $4,100. This

adjustment will help non-component districts offer robust CTE opportunities, ensure consistent statewide access, and sustain programs aligned to regional workforce needs.

Expanding Access to Universal Prekindergarten ($20 million): To expand access to

high-quality early learning opportunities, the Regents recommend a $20 million increase in Universal Prekindergarten (UPK) funding, allocated to school districts based on demonstrated need and capacity. Districts would be eligible for funding if they require at least 16 additional seats to reach their statutory prekindergarten proxy and have utilized at least 90 percent of their existing UPK allocation, ensuring that resources support districts actively implementing their current programs. Eligible districts would be awarded the number of seats needed to achieve the statutory proxy, defined as 85 percent of the combined public and nonpublic kindergarten enrollment, excluding children served in 4410 classroom settings. That number of seats would be multiplied by the district's per-pupil UPK rate. The per-pupil rate is defined as

the greater of the district's Foundation Aid per pupil or the statutory $5,400 floor.

To promote broad statewide participation, no district may receive more than 5 percent of the total grant. Districts would be ranked by their extraordinary needs index, as used in Foundation Aid for the 2026-27 school year (including poverty, economic disadvantage, English language learners, a rural factor, and a weight for McKinney-Vento students), and awards would be issued from highest to lowest until the $20 million is fully allocated. This allocational award would not be a competitive process or require an application; districts need only indicate their interest in and ability to implement the additional seats.