Hempstead School District Faces $30 Million Budget Deficit Amid Rising Charter School Costs

The Hempstead Union Free School District in Nassau County, New York, is confronting a projected budget deficit exceeding $30 million for the 2025-26 school year, primarily due to escalating charter school tuition payments. District officials are considering significant measures, including the closure of one of its five elementary schools and staff reductions, to address the financial shortfall.

Charter school tuition costs for the district are anticipated to reach approximately $106.4 million in the upcoming school year, marking a nearly $20 million increase from the previous year. This substantial rise is attributed to the high percentage of students—36%—attending charter schools, a figure significantly higher than neighboring districts. For instance, Freeport School District paid $18,373 per student in charter tuition for the 2024-25 year, whereas Hempstead paid $26,196 per student during the same period.

To mitigate the looming deficit, the district plans to close one of its elementary schools, resulting in the loss of up to 15 teaching positions and nine administrative roles. Additional cuts to staff, salaries, special services, field trips, and supplies are also under consideration. Superintendent Susan Johnson emphasized the severity of the situation, stating, "Without financial relief, our students will suffer."

In response to the financial strain, district officials have appealed to state authorities for assistance and a revision of the funding formula. A provision included in the New York State Senate's One-House budget bill proposes a one-time additional payment to school districts with at least 20% of their students in charter schools. If approved, this measure would provide Hempstead with an additional $24 million in state aid, potentially preventing the closure of David Paterson Elementary School. Board of Education President Victor Pratt expressed reliance on state support, stating, "For the 2025-2026 school budget in Hempstead, we are reliant on the partnership with the state and the local community in supporting the education of all students."

The financial challenges faced by Hempstead highlight the broader issue of how charter school funding impacts traditional public school districts, especially those with high charter school enrollment. The current funding model requires public schools to pay tuition for each student attending a charter school, leading to significant budgetary constraints. This situation underscores the need for a reevaluation of the funding formula to ensure equitable distribution of resources and the sustainability of public education.

As the district awaits the finalization of the state budget, the outcome will have profound implications for the community, potentially affecting educational programs, staff employment, and the overall quality of education for students in Hempstead.