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FISCAL INSIGHTS ON PRIVATE EDUCATION IN NEW YORK STATE - CONTINUED FISCAL INSIGHTS ON PRIVATE EDUCATION IN NEW YORK STATE - CONTINUED

Looking Ahead: Challenges and Opportunities

The fiscal future of private schools in New York State is
Operational Costs and Revenue Streams Regulatory Environment and State Support Socioeconomic Impact and Community Engagement defined by both challenge and opportunity. Rising costs,
changing demographics, and evolving expectations demand
Private schools, unlike their public counterparts, rely Private schools in New York operate within a complex Beyond their internal fiscal challenges, private schools innovative thinking and strategic vision. Schools must
heavily on tuition as their primary revenue stream. However, regulatory environment, subject to state standards for health, contribute to the socioeconomic vitality of New York continue to adapt—embracing new technologies, exploring
this revenue must support an array of operational costs— safety, and educational quality, while generally retaining communities. They employ thousands of New Yorkers, invest alternative revenue models, and deepening their commitment
faculty and staff salaries, facility maintenance, technology autonomy over curriculum and admissions. Unlike public in local infrastructure, purchase goods and services, and to affordability and inclusivity.
upgrades, extracurricular programming, and more. schools, they do not receive direct operational funding from often serve as cultural hubs for families and neighborhoods.
the state, though certain programs (such as transportation At the same time, the enduring appeal of private education in
Many schools seek to diversify revenue through annual aid, textbook grants, or special education services) may The fiscal health of private schools thus has ripple effects, New York speaks to its capacity for resilience and renewal.
giving campaigns, capital projects, and auxiliary programs provide limited support. influencing everything from local real estate markets to Whether through bold leadership, creative programming, or
such as summer camps, after-school enrichment, and employment rates. Especially in areas where public schools renewed community partnerships, private schools have the
facility rentals. Yet, these efforts are often subject to broader Tax-exempt status for private schools and related may face overcrowding or resource limitations, private potential to navigate fiscal complexities and continue serving
economic forces. The COVID-19 pandemic, for example, organizations is another significant fiscal issue. Property tax institutions offer alternatives that can relieve pressure and as pillars of excellence within our educational system.
tested the resilience of private schools’ fiscal models, exemptions and sales tax relief can lower operational costs, promote choice. Yet, the concentration of private schools
prompting many institutions to re-evaluate spending but also raise questions about public benefit and the impact in certain affluent regions also underscores disparities in Conclusion
priorities and risk-management strategies. Some schools on local tax bases. Policymakers continue to debate the educational access and fiscal benefit.
were forced to reduce staff, defer capital improvements, or appropriate balance between supporting educational choice This newsletter seeks to illuminate the fiscal realities
reimagine programming to ensure continued viability. and safeguarding public resources. Community engagement, partnerships with public schools, facing private schools in New York State, providing you
and outreach initiatives are increasingly recognized as
Endowment income is another crucial element, but few In recent years, proposals have surfaced regarding tax credits strategies for fostering broader impact. Through programs with comprehensive analysis, relevant data, and thought-
provoking commentary. By engaging with these issues, we
private schools in New York (outside of the most elite) for private school tuition, expanded voucher programs, and such as scholarship collaborations, shared facilities, or hope to foster informed dialogue, encourage responsible
maintain endowments of sufficient size to insulate increased oversight of fiscal operations. Each of these policy community service projects, private schools can leverage stewardship, and empower all stakeholders to make decisions
themselves from economic shocks. The need for sound options carries implications for families, schools, and state their fiscal resources for public good, strengthening ties and that benefit students, families, and communities.
investment strategies and careful stewardship of these funds finances, and merits careful consideration in light of New addressing equity concerns.
is clear, as endowments can be a lifeline in times of crisis, York’s diverse and dynamic educational landscape. We welcome your feedback, your insights, and your
supporting financial aid, professional development, and participation in this important conversation. Stay connected!
strategic innovation.
KEN CERINI, CPA, CFP, FABFA
MANAGING PARTNER

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