GOVERNOR PROPOSES EDUCATION

AID FORMULA REFORMS

 

            Governor George Pataki delivered his annual budget message on Tuesday, January 16^th here in Albany in conjunction with introduction of his Executive Budget for 2001-2002.  With respect to education aid, the Governor has proposed $382 million increase which represents slightly under 3%  increase in overall.  While it is not surprising that the Governor would come in with a comparatively modest figure as he has done consistently in prior years, it is surprising that he has described this and his recommendation for “Flex Aid” as fundamental reform.  The proposal consolidates 11 aid categories: 

 

(1)               Operating Aid;

(2)               Tax Effort Aid;

(3)               Tax Equalization Aid;

(4)               Transition Adjustment;

(5)               Gifted and Talented Aid;

(6)               Minor Maintenance Aid;

(7)               Excess Cost – Public, and Excess Cost – Private Aid,

(8)               ERSSA;

(9)               Extraordinary Needs Aid;

(10)           Operating Standard Aid; and

(11)           Limited English Proficiency Aid. 

 

These aids, which totaled $9.5 billion in 2000-2001 are increased by $250 million to $9,828,000,000, a 2.61% increase.  Most of the increase recommended by the Governor is targeted toward operating-type aid and, therefore, more readily usable by districts.  Any benefit from this is greatly diminished by the fact that there is a minimum 1% aid increase for all school districts, regardless of wealth, and, therefore, very little targeting of aids based upon wealth or student need.  Other highlights of the Governor’s Education Budget package includes an increase in the STAR property tax relief program of nearly $600 million from $1.4 billion to $2 billion; a cap on school budget increases of 4% of 120% of the CPI, which ever is less, unless there is a two-thirds majority vote; an increase of $25 million in the Teachers of Tomorrow program; and an overall increase of $239 million for building and transportation aid.  It is also recommended that building aid be available on a Project priority basis with a simplified aid calculation and a payment of building aid on an assumed amortization schedule.  The Governor has also proposed School District access to the New York State Dormitory Authority for pooled financings and an exemption from the WICK’s law requirements for tripartite bidding.

  

 

Once again, the Governor has refused to recommend a freeze in HURD Aid funding.  His budget recommends the continued phase out of that aid category at a projected loss of over $12 million of aid in the current year alone.  This recommendation flies in the face of his other recommendations, which guarantee a 1% increase in Flex aid to districts regardless of how wealthy a district might be.

 

Magnet School Aid which affects a number of small city school district is recommended to remain (approximately) at prior year levels. 

 

A more detailed analysis of the Governor’s proposal is currently being prepared and will be available next week as well as an analysis of the Governor’s Article VII bills.

 

BOARD OF DIRECTORS MEETING

JANUARY 21, 2001

 

                The Board of Directors met on Sunday afternoon, January 21, at the Desmond in Albany in conjunction with the Superintendent’s Council Mid-Winter Conference.  The Association President, Tom McGowan, presided, and those in attendance included Sal Corda, Peekskill CSD; Peter Nowyj, Fulton CSD; Carmen Granto, Niagara Falls CSD; Bob Lupinski, Glen Cove CSD; Katharine Webb, Albany CSD; Ted Grocki, Rensselaer CSD; Kevin Barrett, Newburgh CSD; Jim Lee CSD; Sue Skidmore, Elmira CSD; and Dan Lowengard, Utica CSD.  A treasurer’s report was given, showing the Association finances in good shape.  The report was submitted by Carmen Granto, who is taking over for Jim Lee as Association Treasurer.

 

            Bob Biggerstaff, Association Counsel, gave a quick overview of the Governor’s Education Budget 2001-2002.  He commented that the Governor had touted his budget as a major reform of education funding, but the Education Budget is neither major nor reformed.  The doubling of funding for Teachers of Tomorrow from $25 million to $50 million was noted.  Few districts were able to access this funding because of the late passage of the budget and the early deadline for applications last year.  Dan Lowengard stated that his district was able to access the grant and he would talk about his district’s experience with that at the March 6th Legislative Breakfast and perhaps elsewhere in statewide workshops that may be planned.  Tom McGowan asked Association staff to look at the budget in greater detail and to look at the list of new non-funded mandates such as the report card requirements and the pesticide notice.

 

            Carmen Granto then spoke at length about the threat of Charter School funding to Small City School Districts and particularly, his Niagara Falls CSD.  The discussion covered numerous funding problems under current law including the fact that AOE per pupil is not a valid measure of the costs per child of Charter School education and that some Charter Schools have been approved after a district’s budget vote puts the coming year’s budget in place.  Dan Lowengard urged that the Association put a concrete proposal before the legislature urging State takeover of Charter School costs.

 

 

 

            The Board reviewed the legislative priorities of the Association for 2001.  The following are the priorities set by the Board:

 

a.                  Flex Aid

b.                  Hurd Aid Freeze

c.                  Charter School Funding and Procedural Reform

d.                  Constitutional Debt Limit Repeal

e.                  Austerity Budget Cap Repeal

f.                    Real Property Tax Issues

i.                     Uncollected Taxes

ii.                   Certioraris

g.                  Occupational Education Aid for the five small cities not members of BOCES

h.                  Campaign for Fiscal Equity v. New York State Decision ordering education funding reform

i.                    Building Aid Reforms Proposed in the Governor’s Budget

 

The Board discussed the upcoming January 23rd meeting with Commissioner

Mills.  The Board will be discussing CTE assessments, the ELA and math performance cutoff, special education and SAS, the SED response to the CFE decision, 8^th grade assessments and teacher recruitment issues.  Attending this meeting will be Ted Grocki, Kevin Barrett, Katharine Webb, Bob Lupinski, Peter Nowyj and Mike Egan.

 

            The Board also discussed several upcoming events:  the Regional Roundtable Session, scheduled for January 31^st in Ithaca; the Joint Legislative Hearing on the State Budget in early February; the Small Cities Legislative Breakfast on March 6^th; the next Board Meeting, May 31^st and the Summer Conference at the Otesaga Hotel in Cooperstown on August 12^th and 13^th.

 

            The Board then considered the CFE decision at length.  Under the January 10^th Order of Judge Leland DeGrasse, the legislature will be required to approve reforms to education funding so that children in poor districts throughout the state, not just New York City, receive an opportunity for a sound basic education.  This will undoubtedly require an enormous effort, extensive negotiations, political debate and involvement of the entire education community over the next six to nine months at least.  The judge ordered that the parties report on their progress toward reform by June 15^th and to accomplish implementation of that reform by September 15^th.  With this short timetable, the legislative session may last well into the summer and the budget may not be approved until late August or early September.  The Governor has indicated that the State will appeal that decision.  In addition, it was noted that, a stay pending appeal may be sought by the State but the likelihood of the Court granting an injunction is limited, because the State would have the burden to show a likelihood of success on appeal as well as irreparable harm.  The Board authorized the Association to prepare and submit an amicus curiae brief in support of Judge DeGrasse’s decision

 

Several other items were discussed.  The board is considering the use of the political action/research fund to authorize a teacher shortage survey of the Small City Districts in conjunction with other organizations.  Also discussed was the possibility of conducting Small City new board member training sessions at the Summer Conference on August 12^th and 13^th.  Sue Skidmore will be looking into this.  The Board discussed developing a writing/scholarship competition program for Small City School seniors.  Kevin Barrett will be leading this effort and will look into joining forces with a major corporation and other associations.

 

               

CFE DECISION JOLTS

STATE EDUCATIONAL SYSTEM

 

            State Supreme Court Judge Leland DeGrasse issued an opinion on January 10^th in  Campaign for Fiscal Equity vs. New York State, delivering a knock-out blow to the State and to its educational funding system.  Judge DeGrasse stated that the State has for many years consistently violated the education article of the State Constitution by failing to provide the opportunity for a sound basic education to New York City public school students.  The judge also found that the financing system had an unjustified disparate impact on minority students in violation of federal law.  He ordered that the State legislature remedy the situation by September 15, 2001 and report back to him on progress in this effort by June 15, 2001.

 

            The judge stated that a sound basic education required: (1) sufficient numbers of qualified teachers, principals and other personnel; (2) appropriate class sizes; (3) adequate buildings; (4) up-to-date textbooks, supplies, technology and laboratories; (5) suitable curricula; and “an expanded platform of programs to help at-risk students by giving them ‘more time on tasks’”; (6) adequate resources for students with extraordinary needs; (7) a safe orderly environment.  The judge directed the State to address certain shortcoming among others:  (1) to ensure every school district has necessary resources; (2) to account for variations in local costs; (3) to provide stable funding for long-term planning; (4) to provide transparency in State aid so that the public may understand how it works; (5) to ensure accountability.

 

            The governor delayed an immediate response to this Decision until the following week but then indicated his intention to appeal.  He stated that it was not proper for the State Educational System to be run by a State Court judge.  He also stated that his Executive Budget 2001-2002 dealt with the issues raised by Judge DeGrasse’s Decision.  This assertion is palpably false.  The Decision undoubtedly requires the infusion of substantial new monies to all school districts in the State where student need is great and student performance is lagging.  The Governor’s Education Budget provides a minimal increase of 2.8%, a minimum increase of 1% to school districts, no matter how poor or how wealthy and virtually no meaningful targeting of new money to poorer school districts. The judge stated that the State is ultimately responsible to provide a sound basic education and cannot shirk that responsibility by blaming local governments’ failures to increase local taxes.  The judge also stated that while the litigation involved New York City children, any remedy must necessarily involve the entire state and that the State must begin by ascertaining the actual costs of providing a sound basic education throughout the State.

 

            The board of directors has reviewed this Decision and found numerous similarities between the allegations made by the plaintiff New York City Schools and children and the concerns expressed for years by many small city school districts.  Those similarities will be explored and developed in the coming months in connection with the development of the association’s amicus curiae brief.  The association expects to be asking the Appellate Court for permission to file the amicus brief as soon as it determines that the State has formally appealed the Decision.

 

DATES TO REMEMBER

 

January 30^th (10:00 a.m.             Joint Legislative Hearing            Thomas McGowan will

Hearing, Room 6, LOB            on Executive Budget             present testimony on behalf

Albany)                                    (Education)                              of the Association.

 

January 31^st                              Regional Meeting                    Association holds Regional

(3:00 p.m. - 7:00 p.m.,                                                         Meeting for Central New

Statler Hotel, Ithaca)                                                              York Small City Districts

                                                                                               

March 6^th                             Legislative Breakfast                Association Annual Breakfast

(9:00 a.m. -1:30 p.m.,           and Seminar                                    with Sen. Kuhl and Assy.

Fort Orange Club, Albany                                                       Sanders and Commissioner Mills - Seminar on

                                                                                                Project SAVE, Teacher

shortages and Charter Schools

                                                                                               

March 20^th  (tentative)             Budget Lobby Day                   Officer/Board Lobby on

(Capitol, Albany)                                                                        State Aid Reform/Related

                                                                                                Issues

 

May 31^st                                  Board Meeting                        Spring Meeting

(12:00 p.m. – 3:00 p.m.

and offices of DeGraff-

Foy, Albany)

 

August 12^th & 13^th                  Annual Conference                   Annual Conference, Annual

Otesaga Hotel,                                                                         Meeting of Membership, 

Cooperstown                                                                           Board Meeting