On Board Online • February 2, 2026
By Brian Fessler
Chief Advocacy Officer
On Jan. 20, reporters gathered in the Red Room of the state Capitol to hear Gov. Kathy Hochul officially deliver her 2026-27 executive budget proposal. Many had noted concerns about the effect of federal cuts in the "One Big Beautiful Bill" that President Donald Trump signed on July 4, 2025.
But there was also optimism. A strong stock market helped generate more revenue for the state than initial projections. Many economic indicators suggested a degree of stability. While the state Division of Budget was still projecting a deficit, it had revised projections downward to $4.2 billion, or less than 2% of the total state budget.
Ultimately, Gov. Hochul proposed that state operating spending rise by 5.7%. However, overall "all funds" spending would increase by just 0.7%. This reflected the governor's decision to find ways to replace a relatively significant portion of federal funding cuts.
For schools, the governor's executive budget proposed a formula-based school aid increase of $1.32 billion, or 3.6% over 2025-26 levels.
The aid increase would be driven through a $779 million increase in foundation aid (3%), a $112 million increase (1.2%) in expense-based and other traditional categorical aids (e.g., transportation and BOCES aid), as well as a $431 million increase in universal pre-kindergarten funding.
These improvements were reflected on the state aid "runs" that display district-specific funding details. In addition, the governor's budget materials noted the state anticipates an additional $300 million in aid not reflected in the aid runs - $170 million in building aid due to additional expected final cost reports for capital projects and $130 million to accommodate "school districts expanding their programs to serve more four-year-olds in the 2026-27 school year."
Additional areas of new or increased state funding include continued investments for full-funding of universal school meals, high impact tutoring, the teacher pipeline and certain renewable energy projects.
"A number of proposals reflect the governor's commitment to public education," said NYSSBA Executive Director Robert Schneider. "There are a few areas in which the budget falls short, however, and NYSSBA looks forward to working with the governor and state lawmakers as budget negotiations progress."
A comprehensive summary and analysis of the executive budget's impact on school districts can be viewed at bit.ly/49F7AKC .
The new state fiscal year begins April 1.