February 28, 2000
FOR IMMEDIATE RELEASE

Secret State Education Report Shows New York City Is Shortchanged Over $1.4 Billion in State Funding

Over the State's attorneys' objections, Judge Leland DeGrasse admitted a sensitive State Education Department Report in its entirety into evidence today. The State Defendants have repeatedly attempted to preclude the admission into evidence of documents showing that New York City Schools do not have adequate resources and that the state finance system distributes aid according to a political deal rather than need.

The Report, prepared by the Fiscal Analysis and Services Unit of the State Education Department, concluded that the current state aid "formula" is highly inequitable. According to the Report, New York City is inequitably funded to "an alarming degree." Under one analysis presented by the Report, New York City's shortfall under the current inequitable financing system is approximately $1.46 billion annually, or $1,114 per pupil.

The Report is designed to answer a number of questions regarding whether New York City receives its fair share of state aid and concludes that the answer is no. Analyses conducted in the Report attempt take into account the enrollment, need and wealth around the state. Michael Rebell, Executive Director and Counsel for CFE stated, "this Report, prepared by State itself, strongly supports other evidence presented by the plaintiffs in this case and demonstrates the incredible degree to which New York City schools are underfunded."

The State Report further confirms evidence already introduced in the case that the disparate racial impact of the New York State finance system shortchanges New York City students by at least $1,000 per pupil. In their most recent proposal, the State Board of Regents recommended a total $1.3 billion increase in state aid. Comptroller Carl McCall supported the Regents' proposal in his 2000 Budget Proposal Analysis.

The Campaign for Fiscal Equity ("CFE") is currently in its fifth month of trial in the State Supreme Court challenging the State's inequitable education funding system.

For a copy of the Report, call Sara Weisenthal at Campaign for Fiscal Equity, Inc. at (212) 867-8455.