New York is spending more on education than any other state in the nation, despite experiencing a 12% decline in student enrollment over the last 15 years, according to a report by the Citizens Budget Commission (CBC).

Enrollment in New York's public schools has decreased by 322,808 students, bringing the total to 2.38 million. Projections suggest a further double-digit decrease by 2031, as population growth stagnates and birth rates fall. This trend places New York among the states with the fastest student population decline, trailing only California and New Mexico.

The CBC's "Value Proposition Tracker" analysis indicates that public school enrollment has declined across all regions, with the most pronounced drops occurring outside the New York City metropolitan area. This demographic shift presents challenges for school districts in balancing staffing, facilities, and educational programming with fewer students.

Within New York City, public school enrollment dropped by 7.1%, a figure tempered by an increase in charter school students. The city's public school system has 930,272 students, down from over 1.1 million a decade ago. However, charter schools added 109,463 students during the same period, mitigating the overall decline rate.

Despite this, many city public schools remain under-enrolled, with over 800 of approximately 1,800 schools having fewer than 400 students, and 241 schools with fewer than 200 students. Critics argue that politicians have contributed to this issue by maintaining funding levels for these under-enrolled schools, a practice known as holding them "harmless."

Enrollment declines have been more severe in other parts of the state. The Southern Tier saw a 20% decrease, followed by the Mohawk Valley (19.6%), the Finger Lakes (17.1%), Central New York (17%), the North Country (15.4%), Western New York (13.7%), the Capital Region (13.1%), the Hudson Valley (13%), and Long Island (11.8%).

The state's per-student spending reached nearly $32,000 in 2024, which is 81% higher than the national average. This expenditure exceeds that of neighboring states such as New Jersey (17% more), Connecticut (21% more), Massachusetts (30% more), and Vermont (11% more).

Despite this high spending, New York's academic performance on the National Assessment of Educational Progress (NAEP) exam is near the national average in reading and below average in math. Fourth-grade reading scores ranked 22nd and eighth-grade reading scores ranked 24th. In math, New York ranked 38th in fourth grade and 27th in eighth grade.

In contrast, students in Massachusetts, which spends 23% less per student than New York, ranked first in all NAEP categories. New Jersey students also perform better academically while spending less per student.

Governor Kathy Hochul's office acknowledged that state law permits school districts to merge with resident approval and that the state provides resources to assist merging districts. A spokesperson stated that the administration is committed to "record investments" in schools to ensure every child receives a quality education while maintaining fiscal discipline.

A representative for New York City Schools stated that enrollment trends will be a focus for the department, emphasizing the priority of providing high-quality education in thriving learning environments, regardless of school size. The spokesperson noted that robustly enrolled schools can offer more rigorous academics, enriching extracurriculars, and comprehensive supports.

Politicians may face difficult decisions regarding school closures, mergers, and staff reductions as enrollment continues to decline. The report suggests that policymakers must consider how to address the financial and operational challenges posed by maintaining facilities and programs for a shrinking student population.