Ira Shor, a professor at the City University of New York, read that the state has an unexpected surplus of $5 billion. What should be done with this windfall?
He writes:
“Here’s a scary thought: New York State’s politicians suddenly have an extra $5 billion to spend,” began a NY TImes editorial January 15. “Albany’s treasury is fat with the state’s share of fines paid by financial institutions for past misconduct.” The Times’ editors warn against wasting this windfall from crooked banks and insurance companies on “politicians’ pet projects.” With NY’s government long-designated by the Times as one of the most corrupt state governments around, the Times proposes some good places for the feckless politicians to spend the cash. Sadly but not surprisingly, public education does NOT show up on this newspaper’s list for worthy investments of the windfall.
The Times’ good uses for the money include drinking-water and waste-water infrastructure, capital infusion into New York City’s mass transit used by 8.7 million daily, long-overdue road and bridge repairs, and buying up farmland to protect against commercial development, but the great need for higher public education funding is ignored. This is especially outrageous given that NY State was ordered in 2006 by Appellate and Supreme Courts to supplement habitually under-funded NY City schools by several billion dollars a year, following a 13-year lawsuit finally won by the Campaign for Fiscal Equity, only to be tossed aside when the State claimed fiscal distress after the Wall St. collapse of 2008.
How could public education use this sudden windfall? Smaller class size for starters, ably argued for years by a hero of public schools, Leonie Haimson. Small classes especially enable close teacher-mentoring important for closing the racial gap. Moreso, the windfall could finance teachers’ aides in every classroom who enhance teaching and learning. The $5 billion could also go for wrap-around social services which our poorest students much need— winter-coats and eyeglasses, as well as school-based nurses, social workers, psychologists, guidance staff, and college counselors. If the windfall was used simply and finally to house our record number of homeless families and children, that too would be a benefit to our public schools where most of these children attend.
Instead, NY Gov. Cuomo has imposed hardships on public schooling, especially on NY City, thanks to a State law compelling the City to finance buildings for all privatized charter schools, in a City where real estate is astronomical. In recent years, the State as well as the City found hundreds of millions to subsidize private sports arenas but not for investing in public education or in homeless housing. The Times should be the first to remind the Governor and the State legislature of these needs and of prejudicial policies against public education. The teachers’ unions should have been already protesting the failure to include education in the windfall agenda.
This dismissal of public education continues the long-term hollowing-out of the public sector, undermining the capacity of our public schools, directly enhancing the position of even weak private charters, which in today’s policy climate are lavishly over-funded and startlingly under-regulated.

Put I into employee wages
John A. Matthews
Executive Director
Madison Teachers Inc.
821 Williamson Street
Madison, WI 53703
608-257-0491
matthewsj@madisonteachers.org
http://www.madisonteachers.org
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Really a shame that someone has to spell it out for these guys.
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That’s an easy one. $5B grant to public ed for technology to make it easier to test all students in all subjects. (Forgive my sarcasm.)
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There’s a 2 billion dollar bond for that temporary technology
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I read this NY Times suggestion for spending the money, and was astonished that building new schools was not a that the top of the list…but then, all the $$$ flowing into the charter schools because of ‘failing NYC schools would evaporate.
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cross-posted at
http://www.opednews.com/Quicklink/New-York-What-to-Do-with-in-Best_Web_OpEds-Diane-Ravitch_Dollar_Education-150115-905.html#comment529001I
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Chicago has this “problem” all the time. You start by frantically crying “crisis!” and get everyone to believe there’s a multi-billion dollar deficit so everyone has to pitch in, share the sacrifice and make cuts. Then it turns out that you “find” money somewhere which, combined with all of those cuts everyone generously made for you, you have plenty of money to build a basketball stadium for a private religious college or to revamp the Riverwalk for the third time or to build an eyesore of a museum on lake front property that was supposed to be kept “forever free, clear and open”.
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This surplus stems from enormous one-time legal settlements the state made with a variety of banks, most notably BNP Paribas. It isn’t a renewable or dependable source of revenue, at least not at this scale.
$5 billion doesn’t go very far in New York, either. It’s less than what the NYC DOE pays every year just for pensions, retiree health benefits, and capital debt interest alone. It’s only a billion dollars more than the cost of building the main replacement World Trade Center tower or the new Tappan Zee Bridge. It’s about 4% of the annual state budget. It’s not enough to be a magic infrastructure bullet, especially not in a way that could be distributed evenly throughout the state.
Probably the simplest and most equitable thing to do would be to simply send every citizen of the state a check for $254.45. Exciting, I know.
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Utah has had the same “crisis” for three years now. So schools are underfunded, and yet the surplus is “one-time money” and cannot be used for ongoing needs, such as salaries. So usually technology for schools or roads get the surplus, and real school needs are continually pushed off. The other thing that gets the surplus is the Rainy Day Fund, which is flush, but was never used during the financial crisis.
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As an elected school board member in western New York we are now officially in Budget season. Next Tuesday night we are having a community forum to bring our community together to help us fight for return of our GEA monies and our foundation aid. We will educate the community as to how this came about and provide a template letter for them to send to our Senate and Assembly representatives as well as the Governor. We are considered a wealthy district so the formula gives us less aid, now cut that in half and we are in as dire straits as many urban schools. We have cut to the bone in our little 1800 student district. We have a 98 % graduation rate but that isn’t figured into the equation. We need some of that money used to eliminate the GEA now, this year. We are starving here!
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And Judtih, there is PLENTY of money still trapped in off shore tax havens, the Pentagon, and loopholes for people like Marc Zuckenberg.
Your federal dollars are NOT being put to use as well.
People can say that delivering education is a state responsibility and not a federal one, but they must also gain an awareness of how little bang for our federal tax buck we get compared to other successful countries like Canada, France, Switzerland, Australia, and Finland.
In America, not all people, especially those who are part of the overclass, wish to share their toys.
What will people do when the tipping point comes? The answer is on a spectrum from the very predictable to the most unimaginable. . . . .
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The thinking behind the NY Times’s short list of suggestions is that when you have a big one-time windfall, you should blow it all immediately on big one-off projects that you couldn’t otherwise finance through incremental revenue increases. There is some gut appeal to this logic, which is kind of an extension of the idea that it’s bad policy to use one-off revenue shots (e.g., sales of public land) to finance everyday operating expenses. One good use might be school construction, especially in NYC, where it’s always in the back seat to overwhelming operating costs.
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NYCSCA projects currently run about $100,000 per seat, so $5 billion would create new schools for only 50,000 kids.
But maybe that math is just so depressingly awful, the taxpayers in the suburbs and the rest of the state won’t care that they’re not getting a slice. Living somewhere where there aren’t numerous 75 or even 100+ year-old school buildings and such a prohibitively expensive and painfully expensive process to replace them ought to be its own reward.
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Replace that second “expensive” with “drawn-out,” please.
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It definitely is depressingly awful math.
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5 billion dollars?
I need guided reading books for my little ones, who are 5 years old and learning English. Books must be at levels 1, 2, 3, 4, 6 and 8.
I wish NYS would be be philanthropical with me.
Pick me, pick me . . . .
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Your district is spending $26,000 per student and a jaw-dropping $520,000 for a classroom of 20 kindergarten students.
How in the world is it possible that there isn’t enough money to buy books? Where is that money going?
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Tim does not mention if this is an average of per pupil spending nor does he mention the extent of children with IEPs and children who are English language learners/emergent bilinguals, both of whom cost more money to educate for legitimate reasons.
Time also does not mention how federal taxes pay for almost nothing in an entire school budget and just what are taxes used for by the federal government and how equitable dot hey flow in multiple directions?
Like me, Tim (whose last name begins with “G”?) probably knows that money does not grow on trees and must be efficiently managed.
Unlike me, Time probably does not see how we stand to take acute, serious lessons from societies where equality and equity are prized over academic excellence, but always end up leading to excellence anyway because schools there are state funded an not starved as they are in the United States. School in such countries as FInland as seen as a public trust and fuel their virtuous circle of “education producing educated people who can earn more money, consume, and fuel the economy to fill the tax base that funds education.”
Here in the USA, that circle gets bottle necked when he money gets trapped in the coffers of the 1%, who, no surprise, are driving education policy.
But Tim might not know what that’s all about, living in his very American bubble.
Poor Tim. As much as he shoots his mouth off and with such great force, why is it that he does not put out more information? His filter must be made from heavy gauge stainless steel.
Tim, that finger OUT of your nose, sit up straight, turn off the TV, and grow up . . . . . . .
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Assuming you don’t know, it’s a per-student average. But Ossining (you’re in Ossining, right?) does seem to spend a lot of money per-student — it spends a lot more per-student than NYC does, both for gen-ed and for special ed. And it has a lot of special ed students compared to a town like Scarsdale, but not compared to NYC. Why does out cost more to educate kids in Ossining than it does in NYC?
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Corrections:
“Tim also does not mention . . . . ”
” . . . and just what taxes are used for and how equitably do they really flow in multiple directions.”
” . . . state funded and not staved as they are in the United States.”
“School in such countries as FInland are seen as a public trust and fuel their virtuous circle of “education . . . . ”
“Tim, take that finger out . . . . . . “
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NYC also has a higher teacher/student ratio, with class sizes that are out of control. Just ask Leonie Haimson. Teaching assistants have been removed in early childhood for the most part except for classroom with high needs IEP children.
In my workplace, I proudly stand by the used of TAs in early childhood education in all settings as long as they are being utilized judiciously, which they are. They are not just filing clerks and paper cutters; they academically support children. Many of them have teaching degrees. We also have a ratio guideline of 18 children per class in kindergarten, which we are far more successful in sticking to reducing class size than they are in NYC.
There are cogent reasons as to why some budgets cost more than others. The quality of the average city school is not as high as the average suburban school. We in the suburbs do not have the density, although we increasingly have the poverty, but this is true and endemic all over the United States.
Furthermore, we vote on our budgets, which gives us far more freedom – even with tax caps – than budgets that are driven top-down, as they are in NYC.
But we should have more aid from our federal tax dollars than allowing them to pay for Syria, Iraq, and Afghanistan. We should not be giving such grotesque tax breaks to wealthy entities and individuals. We should value equality over test scores because the former leads to academic excellence.
Do follow the CCSS and give yourself the ticklish and effective experience of doing a close reading of what I wrote in my commentary, FLERP.
Turn off the computer, FLERP, and turn on your brain. If you use it, it will start working again. And if you do that, you will, as usual, be impressed with yourself and the importance you so earnestly attempt to impart to this blog.
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So true, Robert.
Wanna know how they cut the budget in LA schools. They fired the top salaried teachers… now one of them is suing and he says that everyone should… http://www.perdaily.com/2015/01/were-you-terminated-or-forced-to-retire-from-lausd-based-on-fabricated-charges.html
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Despite what Tim says, the $5B would go a long way to paying districts back the monies they are owed because of the infamous GEA and the state’s refusal to disburse the court-ordered foundation aid.
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YES, YES, YES!!!!!!!
My district is owed MILLIONS of dollars thanks to the faulty foundation aid and other formulaic disasters, such as the gap elimination adjustment, which gave basically more aid, proportionally speaking, to wealthier districts, than to mine, which has Title 1 and Title 3 populations.
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The taxpayers of New York are already providing the state’s schools with abundant levels of funding. The average per-pupil expenditure of the state’s 100 lowest-spending districts is in excess of $20,000. There’s little evidence that this high level of spending–the highest in the US–is doing anything to improve the experience for students.
The settlement money wasn’t earmarked specifically for schools, and pains should be taken to make sure that every resident of the state benefits from it. The idea that schools should trump every other interest is absurd given current funding levels and the terrible condition of the state’s economy outside of New York City (which is only in “good” shape due to frothy real estate and financial sectors).
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Tim,
You possibly are unaware of a lawsuit called the Campaign for Fiscal Equity, won by the plaintiffs. The state was ordered to pay billions of dollars to public schools that are inequitably funded. Pleading poverty, the state didn’t pay. You believe in the rule of law, right?
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I’m absolutely aware of C4E. And you’re surely aware of the fact that local jurisdictions have more than stepped up to offset any cuts to (or smaller increases in) state aid.
One way or another New York’s taxpayers have more than adequately funded the state’s schools. I’m not opposed to some or even all of the $5 billion ending up in schools, but there are plenty of other areas of need.
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Local taxpayers approve school district spending plans each year via a direct vote. Contrast that with the decision making model used by NY State (three corrupt politicians in a room). Cuomo screams about NY spending the most money in the nation–but fails to point out that an unusually low share of that money comes from NY State. In fact, NY State’s share ofK-12 education costs has fallen from 49% in 2001 to less than 40% recently. Coincidentally, while reducing their share of support NY has imposed a number of costly (and highly questionable)new mandates on local districts. When a greater portion of the costs of education are shifted back onto localities very poor regions of the state suffer. They suffer both educationally–as their kids get barebones programs–and their communities suffer due to higher taxes. FYI-communities with low property wealth backing each student need to push tax rates much higher to offset the state’s shift of burden. The solution in NY State is for the state to reverse their declining level of support (take on a larger share of K-12 costs). NY should set a goal of funding 65-70% of K-12 costs over the next several years. That is the only fair solution. Cuomo’s Tax Cap and Tax Freeze merely exacerbate equity issues. HIs just proposed Tax Credit is a farce. If you want to lower property tax burdens the state need to expand reliance on the progressive income tax–and reduce reliance on the highly regressive property tax. The only obstacle to this type of solution is the politics of NY State–making it necessary to turn to the courts. Wake up New Yorkers–the state is spending millions in legal costs defending the indefensible…as a strategy for delaying solving the problems of unequal educational opportunity and unequal property tax burdens that cripple the upstate economy!
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The fact that such a low percentage of school aid comes from the state is exactly what the majority of individual districts want (home rule!), and it is the primary reason for the inequity. The very wealthiest districts in New York receive almost no state aid at all.
Funnily enough, I don’t hear anyone talking about reducing inequity by reducing what the wealthiest districts spend, or by having schools funded entirely by the state, like Vermont. It’s too politically useful to have wealthy districts that spend $30-35K per student to point to and scream “inequity!”, I guess.
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You make it out to be that we “choose” to have non-state sponsored schools so that we can make the case for inequity. No municipality has the authority to make that decision. It would all need to come from the legislature and direct voters with heavy changes to make that come about.
We might spend the most per child, but we also have the highest costs of living in the nation as well. If you want teachers on the scale that New York needs, you need to pay a livable wage or else you can’t retain over a hundred thousand educators.
In NYC especially, the spending per child is high, but it’s also some of the most expensive real estate in the world, flanked by the 3 counties with the highest property taxes in the United States (Nassau, Westchester, Bergen) because the land value/necessary wages to live are connected.
All funding is proportional to the needs of that area – and no matter how you look at it, given how much people pay in state taxes, and then local property taxes, the state is forcing people to cry foul at their local services by taking their money and then not giving more of it back in ways that would actually make their property taxes lower.
The tax cap is just a legislative move that increases the noose on local services that the state wants to farm out as they become unsustainable.
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Air conditioners.
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Buy t-shirts supporting Network for Public Education. http://teespring.com/public-schoolhouse-blues
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Just kidding, but we do need to sell 2 more to make the minimum. Check it out! 🙂
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Sounds similar to what is happening in Indiana. Our governor Pence brags about a surplus. Our adjacent town, Munster, which is an upper middle class town with a highly regarded school system has had to cut personnel so drastically that the vice president of the school board was LITERALLY in tears. Her picture was in our local paper. Politicians!!!
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