On January 13, Governor Hochul delivered the annual State of the State Address from Albany, emphasizing the priorities of affordability, safety, and expanded opportunities for New Yorkers. Included in the governor’s proposal are several initiatives related to education, with a focus on affordable child care and supporting New York’s students across all age groups. Below are some of the education-focused initiatives proposed as part of the 2026 State of the State agenda.

• $1.7 billion increase in funding for universal child care, in addition to previous expansions.
• $500 million investment towards accomplishing the goal of statewide universal access to prekindergarten for four-year-olds by the start of the 2028-29 school year.
• Launch of “2-Care” in New York City, providing free child care to two-year-olds, including students with disabilities and English language learners.
• Partnership between the governor and New York City to strengthen the city’s 3-K program.
• $1.2 billion increase in investment in the Child Care Assistance Program (CCAP).
• Legislation aimed at expanding the NYS child and dependent care tax credit to provide relief for child care costs.
• Establishment of the Office of Child Care and Early Education, which will lead the implementation of universal child care throughout the state and ensure the quality of programs.
• A review of state regulations and policies with the goal of reducing barriers to providing childcare.
• A review of tax incentives for NYS employers for addressing the childcare needs of their employees through methods such as subsidies and on-site child care.
• Support for the early education workforce through expanded access to funding, credentialing, and training for prospective educators—initiatives include expanding the Masters in Education Teacher Incentive Scholarship, classifying early education as an in-demand occupation so that early education students can qualify for federal Workforce Pell grants, expanding part-time Tuition Assistant Program (TAP) aid for students in approved non-degree teaching and child care programs, and more.
• Increased awareness of expanded state child tax credit, which went from $330 per child to $1,000 per child under 4 beginning in 2026, and to $500 per child ages 4-16 beginning in 2027.
• State-supported partnerships between high-need districts and tutoring providers to deliver high-impact tutoring to students.
• A task force aimed at examining the cause of the teacher shortage in the state and proposing solutions.
• Schoolyard infrastructure and nature-based solutions to combat extreme heat in New York’s playgrounds.
• Expansion of the Indigenous Youth Service Project to additional districts.
• Continued freeze on tuition for resident undergraduate students at SUNY campuses and CUNY senior colleges to make college more affordable for New York residents.
• Expansion of the list of eligible high-demand jobs under SUNY and CUNY Reconnect to include fields such as logistics, air traffic control and transportation, and emergency management.
• Youth mental health initiatives, such as mental health first aid training and financial awards for schools that demonstrate strong mental health supports.

Learn More and Connect

This article highlights many of the proposed education initiatives for 2026, but it is not an exhaustive list. To read about each of the initiatives in depth, please refer to the 2026 State of the State Book. Consider partnering with RBT CPAs as your district navigates new state programs and funding. RBT CPAs is here to support all of your district’s accounting, tax, audit, and advisory needs. Give us a call today and find out how we can be Remarkably Better Together.

The New York State budget for 2025-2026, passed in May, includes several education initiatives aimed at expanding access to educational opportunities for New York residents. Among these initiatives is the SUNY and CUNY “Reconnect” program, which launched with the start of the Fall 2025 semester. The State has allocated $47 million toward this program, which offers free community college to adult SUNY and CUNY students in high-demand fields. Below are some of the highlights of this statewide initiative.

What is the purpose of the program?

The purpose of the CUNY/SUNY Reconnect program is to expand access to higher education and career mobility for adult learners in New York State. The program aims to make college affordable for a greater pool of New Yorkers while also strengthening the state’s workforce in emerging industries.

Is this program new to New York State?

CUNY Reconnect first launched its pilot program in the fall of 2022, with funding of $4.4 million. The FY26 enacted state budget significantly expands the reach and impact of the CUNY Reconnect program. SUNY Reconnect launched for the first time in 2025.

Who qualifies for the program?

The program is open to New York residents between the ages of 25 and 55 with no previous college degree, who enroll in approved SUNY or CUNY associate degree programs in the following high-demand fields:

• Advanced manufacturing
• Artificial Intelligence
• Cybersecurity
• Engineering
• Technology
• Nursing and allied health professions
• Green and renewable energy
• Pathways to teaching in shortage areas

Students must be New York State residents or qualify for in-state tuition. Students must also take at least six credits per semester and must complete their degree within ten semesters.

What costs does the program cover?

The Reconnect program covers tuition, fees, books, and supplies, after applicable financial aid, for qualifying students. Eligible students will also have access to academic advising and personal support through the program.

Are online courses covered?

Yes, both SUNY and CUNY Reconnect cover eligible online courses in addition to in-person classes.

When is funding available?

Funding became available at the start of the Fall 2025 semester.

Have more questions?

New York’s free community college program aims to remove financial barriers to higher education for adult learners while also promoting workforce development in high-demand fields. Additional information regarding this initiative, including application information and answers to Frequently Asked Questions, can be found on the SUNY and CUNY websites. And as always, for all your school district’s accounting, tax, audit, and advisory needs, please don’t hesitate to reach out to RBT CPAs. RBT CPAs has been providing accounting services to organizations and businesses in the Hudson Valley and beyond for over 55 years. Call us today to find out how we can be Remarkably Better Together.

The recently passed budget reconciliation bill, entitled the One Big Beautiful Bill Act (OBBBA), implements several new tax and spending policies and extends many policies previously set to expire. The OBBBA contains hundreds of provisions applying to individuals, businesses, and federal programs. Policies affected range from tax rates and incentives to healthcare programs to defense spending, and more. RBT CPAs has been assessing the impact of the OBBBA across the industries we serve. This article highlights some of the key provisions of the One Big Beautiful Bill Act impacting K-12 education, both directly and indirectly.

Changes to Medicaid

The OBBBA makes several significant changes to Medicaid programs, including a new requirement that able-bodied adults aged 19 to 64 enrolled in Medicaid must spend at least 80 hours per month working or participating in other qualifying activities (i.e., community service, job training, educational programs) to maintain eligibility. Certain exemptions apply, including for pregnant women, caregivers of young children, and individuals with specific qualifying medical conditions. The legislation also reduces Medicaid eligibility based on legal status. An individual’s eligibility must now also be reassessed by states at least every 6 months.

Additionally, according to estimates released by the Congressional Budget Office (CBO), the OBBBA is projected to reduce federal health spending by approximately $1 trillion over the next decade. CBO estimates that these cuts will increase the number of people without health insurance by 10 million by 2034.

Not only do many K-12 students throughout the U.S. rely on Medicaid for health insurance, but many school districts also rely on Medicaid funding to support health services for students from low-income families. The stricter eligibility requirements and funding cuts imposed by the OBBBA are expected to result in many students losing access to health insurance as well as a reduction in school-based health services.

Changes to SNAP

The new legislation also imposes steep cuts to the Supplemental Nutrition Assistance Program (SNAP), as well as stricter eligibility requirements for recipients. As a result, many families are predicted to lose access to government-funded food assistance.

Increased Child Tax Credit

The OBBBA permanently increases the Child Tax Credit (CTC) to $2,200 per qualifying child under the age of 17, effective for tax year 2025 and indexed annually for inflation. The maximum refundable portion has been raised to $1,700, also adjusted annually for inflation. At least one parent and all qualifying children must possess valid Social Security numbers in order to qualify for this credit.

Expansions to 529 Education Savings Plans

The OBBBA expands permitted uses of funds in 529 education savings plans by broadening the definition of “qualified expenses.” Beyond tuition, tax-exempt distributions from 529 savings plans can now apply to additional expenses related to enrollment in private, public, or religious elementary or secondary schools, including books, materials, testing fees, tutoring costs, dual enrollment fees, and educational therapies. The OBBBA also increases the annual limit for 529 account distributions for K-12 expenses from $10,000 to $20,000.

Federal School Voucher Program

Beginning in 2027, individual taxpayers can claim a dollar-for-dollar tax credit of up to $1,700 for gifts to qualified K-12 Scholarship Granting Organizations (SGOs) operating in states that have elected to participate. SGOs distribute these donations through scholarships for students enrolled in private schools. Many in the education space are concerned that this federal tax incentive created by the OBBBA will divert taxpayer money away from public schools to private schools.

Questions and Further Guidance on the OBBBA

The OBBBA is an expansive piece of legislation enacting many significant policy changes, several of which will impact public school districts, families, and students. Please note that IRS guidance on the new legislation is still forthcoming. RBT CPAs will continue to provide updated information to clients as more detailed guidance is issued. In the meantime, if you have questions regarding the recent tax law changes, please don’t hesitate to reach out to our experts at RBT CPAs. And as always, RBT CPAs is here to support all of your school district’s accounting, audit, tax, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

Financial statement audits are crucial to any organization’s financial health, and school districts are no exception. A financial statement audit provides an independent assessment of an organization’s financial statements, which in turn ensures transparency, accountability, and a strong foundation for future planning. Preparation is key to ensuring a smooth audit process and avoiding delays. Here are some ways school districts can prepare for a financial statement audit.

1. Educate your audit committee.

Audit committees are required under NYS Education Law. Audit committees oversee the audit process. The committee acts as the primary point of contact between the auditor and the appropriate staff or departments. The committee also reviews audit findings and assists in recommendations for improvement. The Government Finance Officers Association (GFOA) makes certain recommendations for the establishment of audit committees, which can be found under the “Best Practices” section of their website.

2. Know the regulations and requirements.

The audit committee should be familiar with the various regulations governing financial reporting for school districts set forth by the Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) guidelines. This guidance is frequently updated, so districts must stay up to date with the latest updates and revisions to these standards.

3. Understand the audit process.

The audit committee should understand the scope of the audit (what will be assessed), the timeline, and the roles and responsibilities of everyone involved. The audit committee should also understand that audit-ready means that all supporting documentation should reconcile to the trial balance before the auditor’s review. The auditor’s role is to verify accuracy, not to make adjustments. Any corrections should be identified and addressed before the audit begins to ensure a smooth and efficient process.

4. Gather all necessary documentation.

The school district must request, collect, and organize documentation and information from the appropriate departments and staff, per the audit requirements. This includes general ledgers, detailed schedules of account balances, bank statements, invoices, receipts, payroll records, purchase orders, contracts, and other financial documents. The documentation should be easily accessible for the auditor, and all financial records should be reviewed for accuracy prior to an audit.

5. Review internal controls.

Regular internal control assessments help to strengthen the mechanisms for preventing fraud and abuse within an organization. Internal controls include procedures for authorization, record keeping, reconciliations, and auditing. These processes must be periodically reviewed to ensure that they are achieving their objectives in preventing risk to the school district.

6. Review prior years’ audit findings.

Ensure that corrective actions have been taken for any deficiencies identified in the prior year’s audit. This will not only reduce the likelihood of repeated findings but also demonstrate your commitment to improving your financial management practices.

7. Communicate with your auditor and prepare for questions.

It’s important to keep an open line of communication with your auditor, maintaining transparency throughout the audit process. Make sure you disclose any changes to your financial systems or operations. Be prepared to answer questions regarding your school district’s financial procedures and processes, internal controls, documentation, operations, and personnel.

Further guidance

A financial statement audit can be a daunting and sometimes stressful event, but proper preparation can reduce the opportunity for error and disorganization. If you have any questions about the audit process for school districts, or if you need any other audit, accounting, tax, or advisory support, please know RBT CPAs is here for you. We’ve been proudly serving school districts, municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 55 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.