According to the latest report from the civic watchdog group “Citizens Budget Commission,” the enrollment rate in public schools in New York City has decreased, with nearly 100,000 fewer students compared to before the pandemic. However, the Department of Education’s spending has increased by billions of dollars compared to pre-pandemic levels, with an average expenditure per student estimated to be close to $40,000 for the fiscal year 2025.
The Citizens Budget Commission released a research report titled “Did You Know” on May 15, highlighting that the Department of Education’s total expenditure for the 2024 fiscal year (ending in June this year) is projected to reach $39.8 billion, an increase of $5.2 billion compared to the 2020 fiscal year before the pandemic, representing a 15.2% increase. Although Mayor Adams’ budget proposal for the 2025 fiscal year (from July this year to June next year) includes a slight decrease of $269 million in the Department of Education’s total expenditure, a reduction rate of 0.7%, the city government will increase its allocation to the Education Department by $2.1 billion to offset the $2.4 billion decrease in federal pandemic aid.
The enrollment in public schools has sharply declined during the COVID-19 pandemic. From the fiscal year 2020 to 2023, the public school enrollment rate decreased by about 10%, resulting in a reduction of 104,374 students. Despite an influx of undocumented immigrant students, the public schools are projected to see an increase of 10,355 students from kindergarten to 12th grade (K-12) in the 2024 and 2025 fiscal years. However, the student population is still 94,019 fewer compared to the pre-pandemic period. Therefore, the estimated average expenditure per student in public schools for the fiscal year 2025 is expected to reach $39,304, an increase of $8,185 compared to the 2020 fiscal year, representing a significant 26.3% rise.
The New York Post analyzed that the phenomenon of decreasing student numbers and increasing expenditures is primarily due to the implementation of smaller class sizes. Public schools have had to hire an additional 17,000 teachers, resulting in an annual increase in expenditures of $1.9 billion. However, the implementation of smaller class sizes may lead to unintended consequences, as poorly performing schools that already have low enrollment rates meet the requirements of smaller class sizes, while better-performing schools, particularly specialized high schools, may have to reduce admissions to comply with the small class size limits. Therefore, the significant increase in the Department of Education’s spending may result in a potential decline in the quality of education.
Moreover, the City Council is currently in budget negotiations with the city government, and the final budget for the Department of Education in 2025 may potentially increase. City Council members have already requested an additional $170 million in spending for pre-K and kindergarten programs.