Once the enrolment audits on Oct. 31 are complete, schools that fall short of projected enrolment will have to repay the New York City Department of Education DOE, while those that surpass expectations will receive increased funding.
The bleak prospect has been anticipated due to the city’s challenging financial circumstances with the increased costs from the immigration crisis and diminishing federal COVID-19 relief funds.
This controversial practice received widespread criticism last year when certain schools were liable to repay large sums to the DOE.
NYC Public Schools Funding
Over the past three school years, city officials had relied on federal funding to prevent midyear cuts and ensure schools were not affected if their student rosters were lower than the DOE’s projections.Since the pandemic struck, the city had to resort to stimulus funds to hold schools harmless and maintain consistent individual school budgets, even with a dip in student enrollment.
“Temporary federal stimulus funding runs out in September 2024. This funding supports over $700 million in recurring expenses such as 3-K, Public Schools Athletic League (PSAL), the Arts, community schools, and social workers,” the DOE states.
“The State’s new class size mandate is expected to cost $1.3 billion annually by 2028, in addition to $30-$35 billion in facilities costs.”
Economic factors such as inflation and stock market downturns have also impacted the city’s tax revenue, leading to reduced funding for municipal services, including for schools.
New York City schools, already struggling from pandemic-related challenges, are dealt a significant blow with the re-implementation of midyear budget cuts.
NYC Schools Face Significant Challenges
In September, Mayor Eric Adams issued a directive for all city agencies to reduce their budgets by 5 percent in November, followed by an additional cut of 5 percent in January 2024 and another 5 percent in April 2024.This decision was made due to the financial strain caused by sheltering and supporting tens of thousands of asylum seekers and unvetted immigrants from the southern border since April 2022.
According to Mayor Adams, the influx of immigrants has resulted in a $12 billion budget deficit.
The mayor’s office announced that the upcoming budget cuts would focus on reducing expenses without resorting to layoffs.
Nevertheless, the savings plan might also incorporate a freeze on hiring that would prevent agencies from filling vacancies aimed at resolving the disruptions in certain operations and services within the city.
“Desperate times calls for desperate measures, and these are desperate times,” said Chief Advisor Ingrid P. Lewis-Martin. “The federal government has all but abandoned New York City, and the state is not doing its fair share to assist New York City, which is managing a federal humanitarian crisis on a municipality’s budget. As a result, our administration has to make tough decisions.”
The announcement of budget cuts has sparked pushback from education officials.
According to Jasmine Gripper, executive director of Alliance for Quality Education, the spending freeze, which extends from the state government, in the 2023-24 budget proposals will translate to limitations in access to education for New York children.
“In the face of growing student needs, flat funding from the State translates into fewer resources in our classrooms that students desperately need. New York has the responsibility and means to care for every child in the state, regardless of race, income, or immigration status,” Ms. Gripper said. “If revenue projections are falling short, we should balance the budget with a tax increase on the ultra-wealthy, not on the backs of children.“We urge the State Education Department to ignore the Governor’s order, and prioritize students with a budget request that is based on meeting students’ needs, not reactive to political posturing,” she said.
