General News
New budget system radically different
May 24, 2007 3:21 PM
New school budget allocations for the coming year were posted online on May 8. The allocation formula, which was announced in January, was substantially modified in April in response to objections raised by community and parent groups and the union. Still it represents a radical departure from the previous budget system.
Under its “Fair Student Funding” formula, the Department of Education has given schools fixed amounts to spend next year based on their students’ individual profiles, rather than allocating funds by instructional programs, as in the past.
On top of a basic per-student allotment, English language learners and low-performing students, for example, bring with them additional amounts of money. Middle school students are assigned higher weights than elementary and high school students, in recognition of slumping test scores in those grades [see chart on page 14].
And instead of directing spending to specific categories, the formula allocates schools a lump sum to spend, delegating to principals the discretion that superintendents and the DOE used to have. The new process also makes allocations more “transparent,” merging literally dozens of separate funding streams in a school into a single formula-driven amount.
The new formula generated concern and confusion throughout the spring, after the city first announced that Fair Student Funding (FSF) would try to equalize funding across schools by taking from some budgets and giving to others. After intense negotiations with the UFT and its partners in a broad coalition of parent and civic groups, however, no school will lose funding this year or next.
Adding to the confusion, though, the city’s funding redesign comes at the same time as New York State’s $640 million increase to city schools as a result of the Campaign for Fiscal Equity. The state increase comes with specific spending requirements, which could put the city’s and state’s budget approaches on a collision course for next year.
Holding harmless
In the city, $110 million is earmarked under FSF for 693 schools that, according to the formula, have been “historically underfunded.” Each of those schools will get as much as $400,000 this year in additional FSF funds. (Some schools will get other increases from separate funds.) At the same time, thanks to the intervention of the UFT and its partners, no school in the system will get any less money this year or next under a “hold-harmless” provision.
Schools with experienced teaching staffs were most likely to lose. But, for example, PS 68 in the Bronx, with 88 percent of students eligible for free lunch, experienced teachers and test scores well above the city average, did not lose $409,842 for next year thanks to the hold-harmless deal. PS 149 in Brooklyn, with 99 percent free lunch and scores far above the city average, was held harmless for $222,767. PS 31 in Staten Island, with 94 percent free lunch, will not lose $66,262.
“The numbers clearly show the city honored the coalition agreement not to destabilize schools that work,” UFT President Weingarten said when the budgets were released. “No schools were hurt and at the same time there is new money for high-needs students, special ed, school safety and expanding pre-K. It’s always good news when schools get additional funds, but they must be spent wisely.”
Almost $1 billion more
School staff and the public can access any school’s allocation for the coming year. Go to http://schools.nyc.gov and click Children First from the menu on the right. Then click Fair Student Funding from the list on the left, and then Your School’s Budget. Then enter the school number and borough in the spaces provided.
Those amounts must now be allocated to specific purposes by principals and schools. Principals must consult with chapter leaders and school leadership teams prior to scheduling their budgets, which gives teachers and parents a point of leverage in what is shaping up to be a tumultuous process.
All together, the city education budget is to increase by $915 million next year.
Along with the $110 million allotted under Fair Student Funding, the DOE said it would spend an additional $300 million next year to honor the new collective bargaining agreements with teachers and principals; $60 million more to add as many as 18,000 half-day pre-kindergarten seats; $80 million on expanded special education and related services; an extra $60 million for charter schools and $30 million for new schools, among other initiatives.
FSF vs. CFE
However, under new regulations governing state school aid, districts must spend the new Campaign for Fiscal Equity funds on a limited menu of specific reforms: class-size reduction, increased student time on task, teacher and principal quality initiatives, middle and high school restructuring or full-day pre-kindergarten. In New York City, class-size reduction is mandatory.
The city is to submit plans to the state by July 1 showing how much it will spend on the menu items, including details of how each district will reduce class sizes this coming year and in the future. At the same time, Education Commissioner Richard Mills is to convene a panel of experts to guide the city in reducing class sizes. State recommendations may not be ready before July.
While welcoming the additional funds available under Fair Student Funding, Weingarten expressed concern about the lack of earmarked funds for class-size reduction, which are not only required by the state but a proven remedy for low-performing students.
“Conspicuously absent is any mention of directing money to reduce class sizes — a new state mandate,” she said. “Budget transparency is good, but coming up with systemic programs is the real way to help struggling kids.”
The UFT and its coalition partners secured a promise from the DOE that a joint committee would develop the class-size-reduction plan, and that committee is in formation. Meanwhile, the UFT will continue to press on two fronts: first in Albany, to ensure that the State Education Department makes the commitment to substantially lower class sizes and, second, in the city, asking teachers and parents to get involved in their school’s budget process. Given the conflicting city and state agendas and the last-minute nature of the planning, that involvement will be critical in ensuring that principals direct funding to where it is most needed.
