Chapter 3: Cutting Back State Aid to School Districts in the Covid Era: Consequences for Racial Funding Equity in New York State

In addition to devastating loss of life and large reductions in economic output, the COVID-19 pandemic resulted in substantial volatility in income and sales tax revenues for state and local governments. As a result, state governments, such as New York, needed to plan for deep cuts in aid to local school districts. Using New York State data, this chapter considers the consequences of a variety of potential state aid cutback policies on the distribution of state aid, assessing differences by the racial composition of school districts. This chapter offers a methodology for state governments to consider the unintended effects of aid cuts on racial equity.