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Litigation into Law and Public Engagement into Policy: CFE Money Flowing to New York Districts This Year

The New York Legislature passed a budget on April 1, 2007 containing a $1.76 billion increase in state education funds for the coming year and unprecedented education reforms that, together, make enormous strides to remedy the constitutional violations identified by the state courts in Campaign for Fiscal Equity v. State, filed by CFE almost 14 years ago. The $1.76 billion is the first of four annual statewide increases that will reach $7 billion annually by 2010.

“The significant funding and important accountability reforms enacted by the Governor and the Legislature respond directly to the court’s orders and fairly culminate years of litigation to achieve equity and adequacy for New York’s school children,” said Michael A. Rebell, Executive Director of the Campaign for Educational Equity at Teachers’ College, Columbia University and counsel for the CFE plaintiffs throughout the lengthy litigation. CFE and advocates across the state have succeeded in turning litigation into law and public engagement into policy.

Public Engagement

The budget bill retains most of the key elements proposed by Governor Spitzer in January, including the creation of a simplified state aid formula and new requirements for districts to plan and implement effective educational strategies. These reforms follow the policy recommendations that emerged from CFE’s multi-year, statewide public engagement process that gathered input and expertise from concerned New Yorkers – parents, educators, school board members, and leaders from business and community-based organizations.

As reported in the Albany Times-Union, the new formula replaces dozens of long-standing and convoluted categorical funding calculations with one basic foundation aid grant. The new funding system will be more transparent and predictable, and the other reforms will help ensure that new funding is spent in ways that “make the money matter,” giving kids better opportunities and improving achievement.

Cost-based Funding Targets Neediest Districts

Over $715 million of next year’s increase is directed to the high-needs students of New York City, a figure that will rise to $3.3 billion over the next four years. Combined with $2.2 billion in City funds, additional funding for New York City’s public schools will far exceed the $2 billion constitutional “floor” ordered by the New York Court of Appeals in November 2006 and will be very close to the $5.6 billion increase that the CFE trial court ordered based on extensive costing-out analyses.

The boost for New York City schools results from changes in the funding system intended to distribute state education aid to school districts based more on need and less on political power brokering in the state capital. The City’s schools educate 1.1 million kids, or 38 percent of the New York State’s schoolchildren, including most of the state’s low-income, immigrant, and English learner students.

The new funding system also provides significant increases that benefit all of New York’s large city school districts, including Buffalo, Rochester, Syracuse, and Yonkers.

According to the Alliance for Quality Education (AQE), a New York advocacy organization that has been an integral part of the push to reform school funding, the budget “represents a substantial breakthrough in a 14-year struggle to deliver a quality education to every child.”

“Contracts for Excellence”

Among the key elements of the governor’s original budget proposal that were kept intact in the final bill were “Contracts for Excellence,” in which districts that receive increases of 10 percent or $15 million in state aid must develop a comprehensive plan for how they will direct their funding and implement their educational programs. These accountability measures are a critical part of ensuring that the new money is spent effectively. In addition, the bill requires New York City to develop a plan for reducing class sizes over five years.

Compromise

To get the reforms passed in the face of pressure from State Senators representing Long Island’s wealthy suburban school districts, the governor had to agree to an extra $400 million – outside the regular formula – directed to Long Island and other districts that received minimal increases under the need-based formula. Billy Easton, executive director of AQE, celebrated the new funding formula as being “the central tool we need to divide school aid fairly,” but noted the importance of funding schools based on need and not on political power. “This year, we’re using [the formula] partially. Next year, we need to use it fully.”

Campaign for Fiscal Equity (CFE)

Founded in 1993 by Robert Jackson, president of Community School Board 6 in northern Manhattan, and by Michael A. Rebell, the Campaign for Fiscal Equity, Inc. is a not-for-profit coalition of parent organizations, community school boards, concerned citizens and advocacy groups. CFE was established to seek reform of the state’s school finance system in order to ensure adequate resources and the opportunity for a sound basic education for all students. Towards that end, CFE filed its lawsuit against the state in May of 1993, alleging the funding system violated the state constitution.

Since then, in conjunction with the litigation CFE has been working to promote public dialogue on education and school funding reform and conduct research on effective remedies. The public engagement process led to formulation of the “Blueprint for Better Schools” in 1999, a civics curriculum for high school students that included observing the CFE v. State trial, and plaintiffs’ proposed definition of a sound basic education, submitted to the trial court as a critical aspect of the case. The New York courts essentially adopted the definition developed by the many public engagement participants across the state. CFE also formed statewide task forces that developed specific recommendations for operating funding, capital construction funding, and capacity-building accountability measures – all of which have now informed the remedial legislation enacted last year and on April 1, 2007.


Prepared by Molly A. Hunter April 10, 2007