Governor Kathy Hochul released her Executive Budget proposal yesterday, outlining funding priorities and policy changes for the 2026–27 State Fiscal Year. The New York School Bus Contractors Association is actively reviewing the proposal to assess its potential impact on pupil transportation, contractor sustainability, and student safety. We remain committed to keeping our members informed and engaged as the budget process moves forward, and discussions continue with state policymakers. To view the 2026–27 State Aid Projections for your school district, click on the button below.
Click Here | 2026–27 State Aid Projections
Legislation Required to Enact the Budget:
Education, Labor, and Family Assistance – Article VII
$39.3 Billion in Total School Aid
The Executive Budget proposes $39.3 billion in total School Aid for the 2026–27 school year, the highest level of State aid in history. This represents a $1.6 billion (4.3%) year-to-year increase.
Key components include:
- Foundation Aid: Increased by $779 million (3.0%), bringing total Foundation Aid to $27.1 billion. Each district would receive at least a 1% annual increase.
- Universal Prekindergarten Aid: Increased by $561 million (52.5%), supporting universal full-day Pre-K for four-year-olds statewide by SY 2029 and expanded 3-K programming in New York City.
Transportation Aid
- Increased by $156.61 million (5.73%), for a total of $2.89 billion statewide.
- Summer school transportation will be funded at $5 million statewide.
- Transportation aid for New York City would increase by 3.92%, slightly below the statewide average.
NYSED School Bus Driver Training Program
- $400,000 is proposed to continue the State Education Department’s school bus driver training program for another year.
Transportation, Economic Development, and Environmental Conservation Key Provisions include:
- Extension of certain DMV fees (inspections, records, titles, dealer/transporter fees) through April 1, 2028.
- Extension of the Internet Point Insurance Reduction Program (IPIRP) through April 1, 2028.
- Insurance premium transparency requirements, mandating advance notice and explanations for premium increases exceeding 10%.
- Automobile insurance premium reductions for vehicles equipped with dashboard cameras, subject to defined standards.
Revenue Article VII
- Extension of alternative fuel tax exemptions (E-85, CNG, hydrogen, and partial exemption for B-20) through September 1, 2031.
- Sales tax exemption for electricity sold through commercial EV charging stations, supporting the State’s zero-emission goals and expansion of EV infrastructure.
NYSBCA will continue monitoring budget negotiations and advocating for policies that support safe, reliable, and sustainable school transportation services across New York State. Further updates will be shared as the budget process advances.
