BILL NUMBER: S8125
SPONSOR: LIU
 
TITLE OF BILL:
An act to amend the education law, in relation to the regional cost
index for purposes of the calculation of total foundation aid
 
PURPOSE OR GENERAL IDEA OF BILL:
To ensure equitable funding for school districts by updating the
Regional Cost Index (RCI) to better reflect the true cost of living in
the Long Island/NYC labor force region.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends subparagraph 2 of Education Law Section 3602(4)(a) to
increase the Regional Cost Index (RCI) for Long Island and NYC from
1.425 to 1.496, starting in the 2025-2026 school year and thereafter.
Section 2 provides for an effective date.
 
JUSTIFICATION:
The current Regional Cost Index used in the education law to calculate
Foundation Aid to districts does not fully capture the cost of living
disparities faced by residents and school districts in regions like New
York City and Long Island. Rising housing costs, energy costs, and
general inflation have driven expenses up significantly, making it
increasingly challenging for school districts to adequately fund educa-
tional programs, services, and salaries.
This bill recalibrates the RCI to ensure that the aid formula more accu-
rately reflects the true cost of living in these areas by adjusting the
RCI to 1.496 for Long Island/NYC, allowing school districts to receive
funding more proportionate to the economic realities they face. This
adjustment will enhance the capacity of these school districts to meet
student needs and maintain educational quality.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect July 1, 2025; provided, however, that if
section 10-a of part A of chapter 56 of the laws of 2025 shall not have
taken effect on or before such date then section one of this act shall
take effect on the same date and in the same manner as such part of such
chapter of the laws of 2025, takes effect.

Statutes affected:
S8125: 3602 education law, 3602(4) education law