New York's public school system is spending 81% above the national per-pupil average, totaling nearly $100 billion annually, despite a 12% decline in student enrollment over the past 15 years. A report by the Citizens Budget Commission indicates that these trends mirror those in New York City and suggest the system primarily serves the financial interests of adults involved in public education rather than the educational needs of children. K-12 public school enrollment has fallen in every New York county from the 2009-10 school year to the projected 2025-26 school year.

Despite the high expenditure, academic outcomes for New York students are described as middling. On the National Assessment of Educational Progress (NAEP) tests, New York students score around the national average in reading and slightly below average in math. This contrasts with states like Massachusetts, which spends 23% less per student yet ranks first in NAEP scores, and New Jersey, which spends 17% less and also outperforms New York on the NAEP. Notably, the report points out that Black students in Mississippi now score higher in reading than their peers in Massachusetts.

Critics point to specific state policies as contributing factors. The New York State Education Department is overseen by a Board of Regents, whose members are influenced by the Assembly speaker. This influence is reportedly tied to the need for teacher union support to secure the speaker's position. Governor Kathy Hochul's administration has also been criticized for supporting increased school spending, including the "hold harmless" policy, which prevents reductions in state funding even when enrollment declines significantly. The governor has highlighted her administration's "record investments" in schools, but the report contends these benefits accrue to those employed within the education system, not the students themselves.

The system is also accused of benefiting local political machines, which allegedly distribute jobs and contracts to allies. The report concludes that the substantial taxpayer cost and the poor return for students contribute to a slow exodus from the state, characterizing the situation as a "vast racketeering enterprise" that prioritizes redistribution of wealth to favored parties over investment in the future.