On January 13, Governor Hochul will deliver the State of the State speech, which is expected to address matters of affordability in New York and the State’s relationship with the federal government. FPI here releases summaries of two previous publications on the State’s fiscal outlook and the tax breaks that New York’s millionaire earners will receive from the federal government this year.
The State’s ability to pursue bold policy initiatives will depend on its fiscal outlook, which faces serious challenges in the coming years due to federal funding cuts. These are the issues to look out for in Governor Hochul's address.
New York's public school system, built in the nineteenth century, entitles New Yorkers aged five to twenty-one to free education. More recently, policymakers, including Governor Hochul and Mayor-elect Mamdani, have committed to finishing the project by extending universal education and care to children under the age of five.
New York's public school system, built in the nineteenth century, entitles New Yorkers aged five to twenty-one to free education. More recently, policymakers, including Governor Hochul and Mayor-elect Mamdani, have committed to finishing the project by extending universal education and care to children under the age of five.
New Mexico will remove all income limits for its childcare assistance program, allowing residents of all income levels to receive childcare subsidies. New Mexico’s efforts could provide insight on the scale of investment needed to reach universality in New York.
The fiscal year 2026 budget process featured negotiations around major education and child policy matters. Most significantly, lawmakers considered changes to the State’s $26 billion Foundation Aid formula, enacting changes that shift substantial funding away from New York City.
New York State has enacted substantial expansions to its childcare subsidy program in recent years, supporting more families than ever. Yet the State risks undermining these gains by underfunding the program in fiscal year 2026, forcing New York City and other localities across the state to deny service to eligible families beginning as early as April 2025, putting them on a waitlist.
By the State’s account, it currently provides enough UPK funding to provide a UPK seat to every four-year-old in the State. Nevertheless, the program remains far short of universal, with incomplete coverage of four-year-olds outside of the state’s major cities and limited provision for three-year-olds across the state.
Childcare in New York State is unaffordable for many families, yet inadequately supports its workers. The State’s childcare costs are the third highest in the U.S., putting a strain on family budgets across the income distribution. The Bronx and Brooklyn have the costliest childcare as a share of family income of any county in the U.S.
Public school funding is allocated to local school districts based on formulas specified in state law, primarily through a formula known as Foundation Aid. This brief explains the State’s rules that govern public school funding.
Support for local school districts is New York’s largest single spending program, accounting for more than one-quarter of State spending. After fast spending growth over the last three years, the fiscal year 2025 executive budget aims to curb school aid spending growth. The legislative budget proposals would roll back the executive budget’s proposed cuts to school aid and provide additional support for public higher education. This funding would preserve the current scope of New York’s education system, rather than representing transformative new investments.
The Governor’s executive budget for fiscal year 2024 aims to increase funding for New York State’s public university system, in part through sharp tuition increases. For the State University of New York’s (SUNY) four university centers, the tuition increases could result in a 51 percent tuition increase over five years. Tuition hikes of this size would represent a generational shift in New York State’s higher education landscape, moving its public universities from among the most accessible in the U.S. to among the most expensive. In doing so, these hikes could jeopardize the universities’ role as engines of upward economic mobility.
The Fiscal Policy Institute was honored to be part of the New York State chapter of the National Domestic Workers Alliance celebration of the 10th anniversary of the Domestic Workers’ Bill of Rights on Saturday, December 12th. The NDWA is a strong voice for domestic workers across the nation. Domestic workers provide essential work within our homes, from child-care and caregiving to keeping our homes clean and functioning. The majority of domestic workers are women, mostly immigrants, and women of color. FPI will be releasing [...]
December 2020 What do you call a loan that has been obtained for the purpose of financing the costs of higher education? A student loan. However, considering the fastest-growing age segment of student loan borrowers are over the age of 60 and are not students themselves, perhaps there is a more suitable term that can be used–education debt. Much like auto debt, mortgages, and credit debt, the term education debt places emphasis on what the debt has been used for, instead of who has used [...]
Economic Recovery Depends on Our Ability to Contribute to the Economy Read the report: “The Rising Burden of Education Debt on Older New Yorkers” December 3, 2020 (Albany, NY) The burden of education debt is not limited to students, it includes their parents and grandparents. Currently, the fastest-growing age-segment of the student loan market is age 60 and older. With New York looking for a speedy economic recovery, solving the education debt crisis means a healthier and more productive state. "Higher education has been portrayed as the key to unlock the door to opportunity [...]