A Disparate Racial Effect The Court of Appeals’ decision also allowed CFE to go forward with its claim that the state funding shortfall is racially discriminatory. Seventy four percent of the state’s minority students attend New York City public schools, and minorities comprise over 80% of the City’s overall student body. The Court ruled unanimously that these figures may demonstrate a disparate racial effect and establish a cause of action under the implementing regulations of Title VI of the 1964 federal Civil Rights Act, which prohibits racial or ethnic discrimination in programs that receive federal funds. CFE v. State, the first fiscal equity case in the nation to successfully plead a Title VI racial impact claim, is also the first fiscal equity case to win one. Home ·About CFE · CFE v. State · Public Engagement · Press Releases Publications ·State of Learning · E-Mail Us · Links