Dear Chatham CSD Community,
I wanted to update you on an important development at the state level regarding funding for schools.
Background:
In early 2024 as part of her budget address, Governor Kathy Hochul proposed changes to how the state funds schools. Most notably, the governor proposed ending the State’s save harmless provision, in place since 1976, that ensures schools in NY receive at least the same amount of Foundation Aid as in the previous year, and not less. The NYS legislature ultimately tabled the idea and called for the Nelson A. Rockefeller Institute of Government to conduct a study of the State’s Foundation Aid formula. The Rockefeller Institute is a public policy think tank that conducts research and analysis on challenges facing the State and provides recommendations to address them.
What’s New:
Last week, the Rockefeller Institute issued a 314 page report that details its recommendations, which include phasing out the save harmless provision over a period of three to five years. The Rockefeller study recommends that income and property wealth thresholds for individual school districts be established and that districts deemed “wealthy” not be eligible for full save harmless aid. The study also recommends establishing enrollment loss thresholds which would also trigger reductions in save harmless allocations.
How This Would Affect Chatham:
Of concern is that, due to Chatham Central School District’s declining enrollment and relatively high property values, the District could lose a significant amount of aid if the legislature adopts these changes. Last year, when the governor first proposed removing save harmless, our District stood to lose approximately 1.8 million dollars over two years.
With state aid being one of our only main sources of income (the other being property taxes), our District may have to make some tough decisions regarding what we can offer our community in the coming budget cycle.
Any changes to the Foundation Aid formula most likely won’t truly be known until the legislature adopts the state budget in April. In the meantime, our District will monitor any and all budget updates as we begin to develop our 25-26 school year budget. As always, we will keep you informed as more information becomes known.