NYC schools facing low enrollment will not experience funding cuts, according to the local teachers’ union.

New York City public schools will not face penalties for enrolling fewer students than anticipated in the upcoming 2025-26 academic year, as communicated by the local principals union over the weekend. This decision is rooted in a policy known as “hold harmless,” which was initially implemented during the COVID-19 pandemic to stabilize school budgets in response to significant enrollment declines. The sustained advocacy from educational leaders has ensured that the policy remains in effect for another school year.

The announcement was made at the union’s annual conference, which has been noted as the largest in its history, with over 1,850 members in attendance. The Council of School Supervisors and Administrators stated that all New York City public schools would be shielded from any reductions in funding linked to enrollment losses.

It remains unclear how many schools will take advantage of this policy or the extent of the financial commitment from the city to maintain it. However, it is noteworthy that principals at underenrolled schools collectively preserved 7 million in anticipated funding cutbacks in the previous year. The lack of immediate communication from school system representatives further complicates this inquiry.

Funding for public schools in New York City operates primarily on a per-student basis, wherein budget allocations are made each year based on projected student enrollments. Historically, budget officials reassess school enrollments mid-year, often leading to funding adjustments based on actual student attendance. Nevertheless, in recent years, the administration led by Mayor Eric Adams has allowed some schools to retain their budget allocations, preventing teacher layoffs and program cuts.

For the current academic year, all schools received assurances that their funding levels would at least match the amounts from the previous fall’s budget, a move that reflects the city’s ongoing efforts to support educational institutions amid fluctuating enrollments. Following Mayor Adams’s decision to suspend his reelection campaign, there appears to be a strategic focus on solidifying his legacy by addressing budgetary concerns that had previously sparked public protests due to proposed school funding cuts.

This initiative is also anticipated to assist underenrolled schools in maintaining smaller class sizes, aligning with the city’s objective to meet a compliance deadline for class size regulations, which call for compliance rates of 80% for class sizes to fall between 20 and 25 students. As part of this overarching commitment, principals are encouraged to apply for additional funding to achieve these smaller class sizes, contributing to a more favorable educational environment for students across the city.