February 2004 Vol. XVIII, No. 2 

EXECUTIVE
BUDGET
2004-2005
HIGHLIGHTS
February 2, 2004

The following is a summary of highlights of the Executive Budget Appropriations Bills and Article VII Bills for 2004-2005.

S.6053/A9553

  S.6057/A.9557

  S.6056/A9556

 *The above modification will decrease the projected increases for all state and local retirement systems, for the state from $670 million to $170 million, for local governments $1.14 billion to $340 million.

 S.6060/A9560

CHARLIE WINTERS
LOOKS AT
THE
GOVERNOR’S
BUDGET
Date:
January 20, 2004

In a bid to stop global warming, Governor Pataki has proposed to freeze almost every thing in sight.  In addition to frozen pipes and frozen buses, the Governor also wants public schools to deal with a freeze in Operating Aid, Extraordinary Needs Aid, Educationally Related Support Services, Limited English Proficiency, Public Excess Cost Aid and BOCES Aid.  Private Excess Cost Aid is allowed to run, but is prorated downward by almost 8.1% to freeze the total amount paid.  Thus, costs are expected to increase here by 8.8% with no added aid.  Small City Aid remains frozen.  Transportation Aid is capped at a maximum increase of 2.5%.  The bottom line increase for all districts is 1.02%, none of it driven by wealth or need.

In a move that ought to at least heat up the courts a little, the Executive Budget protected all of the save-harmless features for high wealth districts while freezing the largest share of the school budget in the poorest districts.  The wealthiest districts can make up this loss with a very small tax increase, while the effect on the poorest districts is profound.  With pensions, health insurance and special education costs driving 5% inflation on overall costs, an aid freeze represents a 3.5% cut in buying power in poor districts where state aid makes up 70% of the budget, but only a .75% cut in wealthy districts where state aid makes up only 15% of the budget.  Since any cost saving measures that the legislature may enact will also affect all districts equally, the poorest districts end up lagging even farther behind.  As a sop to the courts, the Governor recommended a $100 million increase for New York City under the heading of a “Sound Basic Education Grant”.  At the same time he proposed a cut of $41.81 million in Teacher Support Aid for the City, leaving it with a bottom line increase of $56.21 million or 1.05%--about the same as the state as a whole.  Buffalo, Rochester, Syracuse and Yonkers were also pretty much flat. 

In other areas, the Governor once again proposed to “reform” BOCES, and put a moratorium on building projects until they can be “prioritized”.  He proposed a new STAR credit costing $43 million, but paid as a credit against income taxes rather than school taxes, and only in districts that cap their spending to 120% of the CPI or 4%, whichever is less.  To help districts stay within the cap, he is again proposing to require a 2/3 majority budget vote to exceed the cap.  However, he also added “court ordered funding to provide a sound basic education” to the list of current exclusions from the budget cap. 

He proposed adding a comparison of the district’s three-year increase in the tax levy compared to the CPI to the existing Property Tax Report Card, while also adding the decline in the percent of state support of the local budget was not mentioned. 

Under mandate relief, the Governor seeks to require the Regents to obtain the approval of the Governor’s Office of Regulatory Reform before adopting new regulations that would add costs.  Once again he is proposing an exemption from the Wicks Law.

Despite the Legislature’s heroic override of last year’s proposal, the aid law they finally enacted had little equalizing power.  Thus, small city schools and high need schools generally ended up proposing smaller budget increases yet higher tax increases than the average district in 2003, making it pretty certain that wealth-related spending gaps increased this year.  Under this proposal, poorer schools and poorer students would fall even further behind. 

All in all, the governor is pretty much thumbing his nose at the State’s highest court and also at all of the students who are looking to the CFE ruling for a real opportunity to graduate from high school.  It is interesting to note that on the 50^th anniversary of Brown v. Board of Education, New York State continues to become more separate and less equal.

SENATOR
SALAND
“DEFINING
A SOUND,
BASIC
EDUCATION
IN NY”

Times Union
Sunday
January 18, 2004
B1

Stephen M. Saland wrote an article that appeared in Sunday January 18^th’s Times Union section, Perspective. The article entitled, Defining a sound, basic education in N.Y., speaks to the ramifications of the CFE decision. He notes that court did not rule that the state system for funding education was unconstitutional but rather New York State is failing to meet its constitutional obligation to provide a sound basic education and a meaningful high school education. The court did not provide definitions for a “sound, basic education” or a “meaningful high school education.”

Saland reports the Court of Appeals required the state to “ascertain the actual cost of providing a basic education in New York City” by June 30^th. The Court also requires the state to provide a system of accountability “capable of measuring whether the opportunity for a sound, basic education was being provided.”

The Court also rejected the idea that Regents standards are the definition of a sound, basic education rather those standards are “aspirational.” Saland also notes that the information upon which the Court based its ruling on data ending in the 1996-97 school year. Saland points out it is yet to be determined what, if any, effect the NCLB Act, the Schools Under Registration Review list, new governance of New York City’s schools, a dramatic decrease in the number of uncertified teachers and $1.7 billion in additional state aid to New York City will have on school performance.

ASSOCIATION ANALYSIS
OF
EXECUTIVE
BUDGET

The Association has completed its annual analysis of the Governor’s Budget. Below are some findings as relate to totals for SCSD, NYC, the State and suburban schools. For a complete analysis, including monies for individual SCSD schools and separate aids, please go to the Association website, http://scsd.neric.org or call our office at 518-462-5300 and ask for Beth Biggerstaff.

2004-2005
JOINT
BUDGET
HEARING
HELD
FEBRUARY
9^TH IN
ALBANY

The New York State Legislature held its Joint Budget Hearing in Albany on February 9^th. State Education Commissioner, Richard Mills, testified before the Elementary and Secondary Education Committee. Assemblyman Steve Sanders, Senator Steven Saland, Assemblyman Marcellino and Senator Oppenheimer were among those who addressed questions to Commissioner Mills.

Assemblyman Sanders voiced his belief that the recent CFE decision has statewide implications and reform should include all high-need districts. He also asked Commissioner Mills about the differences between the SED budgetary proposals and those of the Governor directly addressing the question, “does the Governor’s budget come anywhere near what needs to be done in NYC or the State?”

Commissioner Mills replied the Governor’s budget proposal is, “not nearly enough.” He stated the Regents proposal of $880 million in aid is the appropriate level and that this is the right time to make a change in state aid because the current formula on the books has not been used for 3 consecutive years.

Assemblyman Sanders then stated that there is an, “ocean of difference, a wide gap” between Governor’s and Regents’ funding proposals. The Assemblyman seemed concerned that the Governor alluded to fund of $324 million from VLTs and no apparent formula on how the Governor came to this number or on how or when these monies will be distributed.

Senator Steve Saland was concerned about the dropout rate in New York and the Regents’ proposed transition adjustment. He asked if this transition adjustment was actually a recapture program. Commissioner Mills assured the Senator their proposal was not. The Senator then queried Commissioner Mills on the Math A issue stating that the public perception is that those numbers are “cooked”. Commissioner Mills related the procedure of fixing Math A exam and assured the Senator the process was exhaustive and proper.

Materials from this hearing can be requested from our office, please email us at ebiggerstaff@degraff-foy.com or phone the request to us at 518-462-5300

ZARB
COMMISSION
HEARING
HELD
JANUARY 13^TH

The Governor’s Commission on Education Finance Reform headed by Chairman Frank Zarb held the last of six statewide hearings in Albany on January 13^th. Representing the Commission were Frank Macchiarolla, former NYC Education Chancellor, Gerald Jennings, Mayor of Albany and former Assistant Principal, Albany CSD, David Shaffer, Director of the Public Policy Institute, an arm of the NY Business Council and Daniel Kinley, Executive Director of the Commission.

Toni Cortese of NYSUT began the hearing urging the Commission to recommend a broad agenda of reform, providing adequate resources for all districts and a vigorous system of supports for teachers. In response to a question by David Shaffer, “When is there enough money (state aid)?” She said, “when all schools have adequate resources.”

Tom Carroll representing Charter Schools and formerly representing Change NY said that money is not the problem, that school choice is critical to meaningful education reform and that Charter Schools are a very successful initiative. Giving more money to funding public schools is not the answer.

Tim Kremer of NYSSBA followed next. He urged consideration of the CFE/NYSSBA Costing Out Study that attempts to document per pupil spending necessary to provide a sound basic education. General principles for reforms NYSSBA supports include equity in aid distribution, mandate relief, and a formula that is predictable and transparent. Mandate relief should include Wicks Law repeal (Niagara Falls CSD saved $8 million on its high school project without having to contend with Wicks) that could save $200 million per year. Section 3020-a reform is needed as is “Triborough Law” reform. NYSSBA supports a moratorium on new charter schools and the current system of school district governance, i.e. there is no research that shows that different forms of governance improve student performance.  NYSSBA also supports multiple paths to a Regents diploma, supports local diploma with rigorous standards and a value added approach to measuring student reform. In response to a question from Frank Macchiarolla, Tim said NYSSBA would support charter schools if they were educationally and fiscally successful, but that has not been demonstrated so far.

Bob Biggerstaff representing the Association also testified. Text of that testimony is available on the website at http://scsd.neric.org.

COMMISSIONER
MILLS
THANKS
ASSOCIATION

Education Commissioner Richard Mills sent a thank you dated January 12^th to Bob Biggerstaff and the Association State Aid Work Group for materials they shared with his department relating to the Association’s educational funding proposal, Funding for Achievement. Commissioner Mills noted that the Association’s proposal had several elements already in common with the Regents proposal. The Commissioner found several elements not included in the Regents proposal. Commissioner Mills indicates he will share with the Department’s State Aid Work Group the following Association proposals:

• The concept of measuring the State’s Adequate Yearly Progress toward a more fair and effective funding system;
• it measures, but does not recommend, a recapture amount of money that a high wealth district is capable of raising with a standard tax rate; and
• it offers, but appears to fall short of recommending, consideration of other revenue sharing options such as consolidation of poor and wealthy district and countywide property taxes.

DATES
TO
REMEMBER

March 23, 2004
Legislative Breakfast
Albany

August 8-9, 2004
Summer Conference
Ramada Inn, Geneva