Full Breakdown
New York City Schools Spend Record $43 B as Enrollment Falls and Test Scores Stagnate
5/12/2026, 8:32:01 PM
Record Spending Amid Declining Enrollment
The New York City Department of Education (DOE), under Chancellor Kamar Samuels, is running a $43 billion budget for 2025-26, about $44,000 per pupil – the highest per-student cost among large U.S. districts. Enrollment has dropped 157,900 students since 2015, and the DOE projects a further loss of 153,000 students by 2034-35, leaving roughly 721,000 pupils in traditional public schools.
Policy Context and Demographic Trends
The decline mirrors citywide demographic shifts—lower birth rates, reduced immigration, and a surge toward funded charter schools, which now enroll 150,500 students in 285 campuses. State officials, including Gov. Kathy Hochul, are debating extensions to class-size reduction mandate championed by the teachers’ union, which forces smaller classes even as enrollment shrinks.
Spending Breakdown and Academic Outcomes
NYC spends 50 % more per student than Los Angeles or Chicago. Teacher and staff salaries consume $13 billion (61 % of the budget), $3.5 billion funds charter payments, and $1.5 billion covers special-education due-process cases, which have risen from $500 million in 2019 to $1.5 billion. Only one-third of fourth-graders are proficient in math, 28 % in reading; eighth-grade proficiency is 23 % in math and 29 % in reading.
Official Statements & Responses
DOE spokesperson Nicole Brownstein said the department views education as the best investment for children and that it is working to meet the class-size law, cut excess spending, and ensure every child receives a world-class education. She also said enrollment trends reflect broader demographic changes and that the city will continue seeking solutions that maintain robust education while complying with the class-size mandate.
Criticism & Opposition
Analysts contend spending is not delivering proportional academic gains. Andrew Rein of the Citizens Budget Commission said many schools produce only middling results and that an increasing number of parents are opting for charter schools over traditional public schools. Daniela Souza called the class-size law “unworkable” and “impossible to implement,” noting that school closures and mergers are inevitable.
Verbatim Quotes
- “Despite the City spending $44,000 per student, too many of its schools are delivering middling results, and some parents are increasingly choosing charters over traditional public schools,” — Andrew Rein, Citizens Budget Commission
- “The law is unworkable law. It’s impossible to implement,” — Daniela Souza, Manhattan Institute
- “There is no better investment than one in our children,” — Nicole Brownstein, DOE spokesperson
- “The New York City’s Department of Education budget keeps going up while the number of students they’re educating continues to decline,” — Daniela Souza, Manhattan Institute
What’s Next
Mayor Zohran Mamdani’s upcoming budget will address high spending and enrollment decline, focusing on the class-size mandate and possible school consolidations. Comptroller Mark Levine flagged a rise in special-education due-process costs from $500 million in 2019 to $1.5 billion, prompting calls for fiscal review. Stakeholders expect further talks with state legislators on class-size timelines and charter financing reforms.
