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New York Governor Spitzer Proposes Major Education Policy and Funding Reforms

Governor Eliot Spitzer has proposed an overhaul of New York’s education finance system that will tie far-reaching accountability reforms to the “the largest infusion of resources” in state history and change the entire funding formula in a way that aligns dollars with the needs of children.

Above and Beyond the CFE Ruling

In releasing his first executive budget on January 31, Governor Spitzer announced his historic aid increase for New York’s schools, making it clear that his “Contract for Excellence” was a statewide agenda. Spitzer’s budget provides a $1.4 billion statewide increase in school funding for the upcoming year, increasing to $7 billion after four years. New York City, between the Governor’s proposal and the $2.2 billion in additional City money proposed by Mayor Michael Bloomberg, would see an increase of approximately $1.2 billion for 2007-2008, rising to $5.4 billion after four years. If fully funded, the Governor’s budget would go above and beyond the “constitutional floor” laid out in the New York Court of Appeals’ November ruling in Campaign for Fiscal Equity (CFE) v. State, which mandated an additional $1.9 billion for New York City schools.

“We applaud Governor Spitzer for proposing the most comprehensive school funding accountability system ever seen in New York State,” said Michael A. Rebell, executive director of The Campaign for Educational Equity and former counsel for the plaintiffs in the CFE case. “The courts in the CFE case were firm that real accountability must accompany any increase in funding. This proposal is a big step toward compliance with the CFE mandate.”

Geri Palast, Executive Director of CFE, praised the Governor’s proposal and noted, “CFE’s work is far from done. We will be a full partner with Governor Spitzer in enacting this long-awaited budget and reform initiative.”

Contracts with Districts

The Spitzer camp is calling its set of reforms a “contract” with districts. In exchange for truly adequate funding, districts receiving major sums ($15 million more or a 10 percent increase over the previous year) are required to develop a comprehensive plan for how they will direct their funding and implement their educational programs. As Spitzer explained, “The Federal No Child Left Behind Act sadly demonstrated that accountability without resources is a false promise. But we also know that resources without accountability are a recipe for waste.”

Spitzer urged investing dollars in programs and strategies that are proven to work, such as reducing class sizes and improving the quality of teaching, and said each district will have to select from “a menu of approved strategies and initiatives.” Under the plan, districts will also have to produce real measures of performance improvement to evaluate success. The comprehensive plan will come out of a public process that will involve every education stakeholder in the district.

Landmark Reforms

A landmark piece of Spitzer’s address was his call for a new “foundation” funding formula that will ensure education dollars match the actual needs of schoolchildren, not the needs of politicians. The state’s current formulas have been notoriously subject to political manipulation. Spitzer seeks to replace these “byzantine and politically driven school aid formulas that are annually manipulated to produce predetermined results” with a “more efficient, transparent, and reform-minded” school aid formula.

“Rhetoric has been flying around for years to fix the state’s arcane and unfair funding formulas, but Spitzer has put a real proposal on the table to actually do it with a foundation formula that offers a fair and simplified way to distribute dollars,” Rebell said.

Spitzer also proposed to establish universal access to high-quality pre-kindergarten programs within the next four years.

While it is difficult to predict what may emerge from the legislative process come April, “A Contract for Excellence” holds the potential to meet each aspect of the highest court ruling in the CFE case—adequate funding distributed based on actual student need plus rigorous accountability.

Prepared by The Campaign for Educational Equity