Adams administration resumes midyear budget cuts at low-enrollment schools

Public schools with lower-than-expected enrollment will have to give money back to the education department this winter, raising the possibility of reduced after-school programs and enrichment programs halfway through the year.

The process, known as the midyear adjustment, was a standard part of the school year before the pandemic. It has been on pause since 2020 thanks to federal stimulus dollars that supported popular programs like the city’s free summer school and early education initiatives.

But as federal funding dries up, the education department will begin clawing back money from schools with low enrollment and distributing additional funding to schools serving more students than projected. Other programs supported by stimulus dollars are also at risk.

The midyear cuts come on top of Mayor Eric Adams' calls for increased belt-tightening at all city agencies, including the education department. Last year, Adams faced furious pushback from parents over school budget cuts estimated to be as high as $479 million.

The teachers union, the United Federation of Teachers, pushed back against the midyear cuts.

“It is unacceptable for NYC to cut funding for its public schools,” said Michael Mulgrew, the union's president.

The midyear cuts may be just the beginning. Mayor Eric Adams has proposed 5% cuts to agencies in November, followed by 5% in January, and another 5% in April – reductions that education advocates say could be devastating to schools. Adams has said the cuts are necessary to cover the costs of the city's migrant influx. The education department has not said which programs will be slashed.

Enrollment at the city’s public schools has plunged in recent years, with the pandemic accelerating a long-standing trend. More than 120,000 students left over the last five years.

But city officials have said that public school enrollment might be leveling off overall. The number of migrant students at many individual schools has increased sharply, and the education department recently revised its funding formula to boost funds for students in temporary housing, which includes migrant students and other homeless students.

A DOE spokesperson said schools that report higher enrollment during the year will receive additional funding.

Shortly after Adams took office, principals and parents were alarmed to discover that hundreds of millions of dollars had been cut from schools' budgets, forcing administrators to reduce arts and after-school programming.

The cuts drove angry parents to protest Adams at events throughout the summer, and prompted a legal challenge that ultimately failed. Several city councilmembers who voted to approve last year's budget later apologized for doing so.

This year’s enrollment will be tallied at the end of this month.