Adjusts the regional labor force cost index for the Hudson Valley region for the 2025--2026 school year and thereafter.
Summary
This bill amends the New York Education Law provisions governing the regional cost index used in the state school aid formula. The measure specifically changes the treatment of the Hudson Valley region by extending the existing index of 1.314 through the 2025-2026 school year, then increasing the Hudson Valley index to 1.425 beginning in the 2026-2027 school year and thereafter. It also preserves the existing regional indices for the other labor force regions listed in the statute, including Capital District, Southern Tier, Western New York, Long Island/NYC, Finger Lakes, Central New York, Mohawk Valley, and North Country.
The practical effect is to alter how state school aid is calculated for districts in the Hudson Valley by recognizing a higher regional labor cost factor. Because the regional cost index is part of the formula used to determine school aid, the bill would likely increase aid eligibility or aid amounts for affected districts in that region relative to the current law. The bill takes effect immediately, but the revised Hudson Valley index is phased in beginning with the 2026-2027 school year.
Impact
The bill amends section 3602 of the Education Law, which governs the regional cost index component of state school aid calculations. Its main legal effect is to revise the Hudson Valley regional index from 1.314 to 1.425 for school years beginning in 2026-2027 and later, while leaving other regional indices unchanged. This would affect school districts in the Hudson Valley by increasing the cost adjustment used in the aid formula, potentially increasing state aid payments tied to regional labor market costs.
Sentiment
There is no recorded committee transcript or vote history available with the bill, so no direct legislative debate can be summarized. Based on the bill text and caption, the measure appears technical and targeted, with an apparent policy purpose of updating the Hudson Valley cost factor to better reflect regional labor market conditions. The absence of recorded opposition or amendments suggests no documented controversy in the available materials.
Contention
No specific points of contention are documented in the provided materials. The only likely area of debate would be fiscal impact, since increasing the Hudson Valley regional cost index could raise state school aid costs and shift more funding to districts in that region. Any concern would likely come from budget-focused lawmakers or stakeholders outside the Hudson Valley, while supporters would likely include Hudson Valley school districts and education advocates seeking a more accurate cost adjustment.
Relates to the regional cost index for purposes of the calculation of total foundation aid; updates the regional cost index to better reflect the differences in cost of living across the state.
Relates to the regional cost index for purposes of the calculation of total foundation aid; updates the regional cost index to better reflect the differences in cost of living across the state.
Directs the education department to study, review and report on the geographic cost variation of counties in the Hudson Valley labor force region to determine the appropriateness of the region cost index values for purposes of the public school foundation aid formula.
Amends the Education Equity and Property Tax Relief Act to set the regionalization bonus at 2% of the state's share of foundation education aid for the fiscal year starting July 1, 2025, and for each year thereafter.
Amends the Education Equity and Property Tax Relief Act to set the regionalization bonus at 2% of the state's share of foundation education aid for the fiscal year starting July 1, 2026, and for each year thereafter.