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Major Plaintiff Victory in CFE v. State: Court Affirms that Money Matters, State Must Undertake Need-Based Costing Out

On June 26, 2003, the New York State Court of Appeals, the state's highest court, ruled in Campaign for Fiscal Equity (CFE) v. State that all children in New York State are entitled to a "meaningful high school education." The 4-1 decision overturned an intermediate appellate court ruling that said the state constitution only requires an education encompassing the skills "imparted between grades eight and nine." The decision also reinstates a large part of State Supreme Court Justice Leland DeGrasse's 2001 trial court ruling which ruled that all children have the constitutional right to a "sound basic education" that prepares them for capable citizenship and competitive employment, and that New York's current funding system fails to meet that standard. (See the CFE website for more information on the case's 10-year history and for legal documents pertaining to the case).

Remedy:

The remedy laid out by the Court of Appeals requires a costing-out study to determine the actual cost of providing a sound basic education, which the Court defines as a "meaningful high school education," in New York City. CFE and the New York School Boards Association have partnered with 32 other organizations across the state to conduct such a study, the New York Adequacy Project, for all New York school districts, and the results are expected in March 2004. Once the dollar amount is known, the State, the Court said, must "ensure" that all New York City schools have the resources they need, and that there is a system of accountability "to measure whether the reforms actually provide the opportunity for sound basic education." Although this part of the decision technically only applies to New York City schools, the "meaningful high school constitutional standard applies statewide, and it is unlikely that the State would be able to change the funding system for the nearly 40% of New York State students that the City educates without changing it statewide.

This remedy was carefully crafted by the court, which expressed concern during the May 8, 2003 oral arguments that the remedy reflect the separation of powers and avoid long-term involvement by the courts, as has occurred in New Jersey. The decision provides a 13-month deadline (July 30, 2004) for the Legislature and Governor to do their work.

Separation of Powers:

The court also laid down detailed reasons for its intervention in what the State argued is a legislative issue. Partially in response to the dissent, by Judge Susan P. Read, the majority opinion, written by Chief Judge Judith S. Kaye and joined by Judges George Bundy Smith, Carmen B. Ciparick, and Albert M. Rosenblatt, asserted that courts are "well suited to interpret and safeguard constitutional rights and review challenged acts of our co-equal branches of government--not in order to make policy but in order to assure the protection of constitutional rights." Only three states--Pennsylvania, Rhode Island, and Illinois--have had court majorities declare education finance cases non-justiciable.

Other States:

By specifying costing-out, resources, and accountability, the court seeks to give "more detailed remedial instructions" than those in New Jersey, in order to forestall additional litigation. The court cited the case of Kentucky's 1989 Rose v. Council for Better Education decision as an example of a situation in which more direction led to swifter implementation and no further litigation. The mandate to determine the cost of an adequate education echoes recent rulings in Arizona, Wyoming, and Tennessee and policy in Maryland, where, in early April 2002, the Legislature, without being specifically ordered to do so by a court, adopted a new funding system based on the costing-out research of the Maryland Commission on Education Finance, Equity, and Excellence (the "Thornton" Commission).

The CFE ruling should be helpful to plaintiffs in other state education advocacy cases, including Student v. Driscoll, currently at trial in Massachusetts, Abbeville v. State, currently at trial in South Carolina, Crane Elementary School District v. State, scheduled to start trial in March 2004, and California's Williams v. State, scheduled to start in August 2004. The court declared in no uncertain terms that "money matters," i.e. that resources spent on quality teachers, facilities, small classes, libraries, etc. are likely to improve achievement, regardless of the socioeconomic background of the students. Some State defendants in school funding lawsuits--California is a prime example--claim that minority and low-income students cannot learn. In response, the court said, "we cannot accept the premise that children come to the New York City schools ineducable, unfit to learn."

Needs-Based:

In focusing repeatedly on the needs of New York City students and how to address them, the court's decision was reminiscent of the April 2002 order of North Carolina Superior Court Judge Howard Manning, who ruled in Hoke v. State that "at-risk children can learn with effective, individualized and differentiated instruction delivered by a certified, well-trained, competent teacher with high expectations" and that "at-risk children require more resources, time and focused intervention to learn."

Updated July 8, 2003