Significant funding boosts for Hornell, Wellsville schools in NYS budget. What it means

Both the Hornell and Wellsville school districts are in line for significant increases in state funding under New York Gov. Kathy Hochul's proposed 2024-25 budget.

The governor's spending plan was released Jan. 16 and includes $35.3 billion in aid to schools.

Hochul proposes hiking total Foundation Aid — the main source of state funding districts get for their daily operations of schools — by $507 million, or about 2.1%.

Hornell, a city school district in Steuben County, would receive $21,441,873 in Foundation Aid under the governor's plan, an increase of about $750,000, or 3.6%, over last year.

Wellsville, the largest school district in Allegany County, would see its Foundation Aid boosted by $3.4 million, about 17%, in the governor's budget, to $20,217,367 for the 2024-25 academic year.

Based on these preliminary numbers, Hornell and Wellsville find themselves on the positive side of the ledger, especially given that a New York State School Boards Association analysis of the governor's proposal determined half of the 673 districts that receive Foundation Aid would see cuts.

“Of course we would like more money and more resources for our program and I don’t want to say that we wouldn’t. But I think for Hornell, it is fair," Superintendent Jeremy Palotti said.

Why is Foundation Aid going up for Hornell, Wellsville?

Student enrollment is a factor in both districts' projected Foundation Aid increases, with Hornell and Wellsville each seeing modest gains over the last 12 months.

Hornell has 40 more students than a year ago, with its enrollment now 1,469.

Wellsville added students after a long-time parochial school closed, said Superintendent Dave Foster. Although the number of additional students district-wide is less than 30, the uptick played a "critical role in the increased funding projection," Foster said.

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Another factor in the Wellsville Foundation Aid projection is "a notable decrease in income wealth within our district from 2020 to 2021," Foster said, adding, "This decrease significantly impacts the state aid formula."

Dresser-Rand, a major Wellsville employer, shut down in 2020, possibly contributing to the decrease.

Why Foundation Aid increases are important to Hornell, Wellsville taxpayers

State aid funding is the major source of revenue for school districts and the levels of aid have an impact on local property tax rates.

In Hornell, for example, state aid accounted for nearly 78% of revenue in the district's 2023-24 budget. The next highest source of incoming dollars, taxes on property, were at about 18%.

Total state funding for Hornell under the governor's budget is $34,491,078, an increase of about $1.1 million or 4.2%.

Total state aid to Wellsville is projected at $28,367,345, an increase of $3.5 million or 14.3%.

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The funding boosts come as costs have continued to rise in local school districts.

Hornell must plan for a 19.5% increase in health insurance for 2024-25, the second consecutive year of double digit hikes. Much of the increase can be attributed to a post-pandemic surge in demand for care.

“If health insurance had not seen that increase this would be, not an easy budget, but a pretty non-complicated budget,” Palotti said. “There are definitely challenges that are associated with that.”

What's next in budget, funding process

The governor's plan must be negotiated with the Legislature and it's unclear how many changes lawmakers will push for.

Hochul's plan attracted sharp criticism from education officials for removing a policy that ensures districts get at least the same amount of money as the previous year.

Foster said Wellsville is "optimistic about the proposed (Foundation Aid) increase" but the district remains cautious in budget planning.

Foster said until the Legislature passes a budget, the increase remains a projection, not a given.

“I will believe it when the budget gets enacted and that increase stays there," Foster said.

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Palotti said Hornell is "not expecting a big change in the legislative budget" from what the governor has proposed.

New York state's budget deadline is April 1, although adoption of a state spending plan by then is uncertain.

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This article originally appeared on The Evening Tribune: Hornell, Wellsville would get school aid boost under Hochul budget