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Two New York Cost Studies Call for Billions More for Schools

At the end of March 2004, two studies of the cost of providing New York students with the opportunity for a "sound basic education," as required by the State Constitution, were released. Both independent studies determined that billions more in school funding are needed annually - as much as 26.5% more.

New York Adequacy Study

On March 30, 2004, the Campaign for Fiscal Equity released the results of the New York Adequacy Study, a 15-month, foundation-funded cost study undertaken by researchers from the American Institutes for Research (AIR) and Management Analysis & Planning, Inc. (MAP). The researchers calculated the cost of providing all New York students the opportunity to meet the state's academic goals, the "Regents Learning Standards." This study used the professional judgment methodology, supplemented by statistical analyses and an analysis of successful New York schools, to obtain its figures.

In addition, this was only the second study in the country in which the researchers sought input from the public through extensive public engagement meetings held around the state.

The study results show that 517 of the state's 700 school districts are not spending an adequate amount on education and estimates that an additional $6.6 to $9.1 billion in 2004-05 dollars is needed to bring opportunity to the adequacy level.

In 2001-02, New York spent $31.7 billion on pre-K to 12 education for its 2.9 million students.

Governor's Commission and Standard & Poor's Cost Study

On March 29, 2004, the New York Commission on Education Reform ("Zarb Commission"), appointed by the governor and chaired by Frank G. Zarb, released its recommendations for reform to New York's school funding system. The Commission's final report deferred to "the State's elected leaders" to revise the funding system, but recommended, inter alia, that the State: increase school funding by $2.5 to $5.6 billion annually; direct more funding to school districts educating low-income and ELL students; simplify the funding system; and improve predictability of funding by creating a dedicated fund guaranteed by the State's General Fund and committing to state aid on a two-year basis.

To assist in its work, the Commission asked Standard and Poor's (S&P, the credit rating company) to "conduct an analysis of spending by successful school districts to help determine the cost of providing all students the opportunity to acquire a sound basic education." The S&P analysis defined successful school districts under four different achievement criteria, then determined average expenditures per-pupil in those districts, and eliminated the higher spending 50% of the districts.

Legislature Must Deliver Remedy for CFE v. State by July 30, 2004

The results of the two cost studies, the Commission's report, and funding system changes proposed in January 2004 by the State Board of Regents are now in the hands of the governor and legislative leaders, as they deliberate over the 2004-05 state budget. Soon, they will also receive CFE's "Sound Basic Education Task Force" final proposals on operating aid, building aid, and accountability.

In June 2003, in CFE v. State, the New York Court of Appeals (the state's highest court) declared that the state's education finance system violates the State Constitution and ordered the State to "ascertain the actual cost of providing a sound basic education" as the first step in its three-part remedy. The state must also ensure that every school has the resources necessary for providing the opportunity for a sound basic education and ensure a system of accountability to measure whether the reforms actually provide the opportunity for a sound basic education.

The Court set a deadline of July 30, 2004 for implementation of the necessary reforms.

 

Prepared March 31, 2004