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Budget Info

Action Alert on the August 01 Baseline Budget!

For almost 6 months, the Governor has refused to bargain with legislative leaders, who had much higher targets for education spending. Using a risky, unprecedented and dramatic tactic, the Assembly and the Senate passed legislation August 3 which drastically impacts New York City and other school districts’ budgets. They cut nearly $4 billion out of the Governor’s budget in non-education areas, passing a budget that is being termed the "baseline" budget. Although the bills provide for spending in the education area at a slightly greater spending level than the 2000-2001 budget, a $382 million or 2.6% increase, they MATERIALLY CHANGE THE REFORM AGENDA for which we have fought so hard.

We cannot assume that this budget will be automatically improved upon when the Legislature returns, as expected, on or before September 15 (when they must return because of re-appropriation deadlines). Although they have every intention of submitting appropriation bills to increase these amounts, there is no guarantee of success.

We must make certain that the Governor and the legislature know that this budget is not acceptable–our silence will signal that it is. That said, an 18-month budget would be a good recommendation, given the lateness of this year’s budget. If they only pass increases for 6 months (e.g. September 15 through April 1), and if the Governor announces a new proposed budget in January of 2002 which they then argue about anew, what help does that give to the school districts trying to plan a budget? If they continue to fight over the amounts, our reform agenda will be stalled.

We now have to go back to our individual legislators, the Assembly and Senate leadership and to the Governor and strongly reiterate our requests, including:

• Increased funding for class size reduction as per the 1997 state budget agreement (an additional $85 MM over last year) and continuation of the LADDER programs into the 2002-03 school year;

• Implementing reforms to the funding formula itself, with a regional cost adjustment and no "caps" on aid to high needs districts. EPP supports streamlining of aid categories, an enhanced adjustment for Extraordinary Needs Aid, and separating out the Excess Cost Aid for special education students;

• Reform of the Building Aid formula to take into consideration a priority of projects, rather than the need-blind, spend-to-get, first-come, first-serve philosophy that now guides spending;

Addressing the adequacy concerns raised in the CFE lawsuit, which are only exacerbated by a continued inequitable distribution formula in a slowing economy. NYC students are still receiving far too little money to provide a sound, basic education.

ACTION REQUEST

• Please call or write the Governor - tell him that you expect him to be at the bargaining table with the Legislature, and tell him you support the agenda set forth above.

• Please call, write or fax your legislators, Assembly Speaker Silver and Senate Majority Leader Bruno and ask them to negotiate a supplemental budget with adequate funding for education for 18 months, and with reforms.

Please send your letters and make your phone calls, and let Educational Priorities Panel know whom you have contacted (epp@edpriorities.org). Thanks for your help.

For more background information, go to "What was the Budget Agreement?"

For EPP's budget analysis from the last newsletter, go to "State Budget Impasse."

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