Regent Reyes: Has CFE been met?

At Monday’s Regents State Aid Sub-committee meeting, Regent Reyes asked a profound question. From a legal perspective, has the Campaign for Fiscal Equity court case been met, as the Governor claims, or is it still unmet? NYSED’s counsel replied that the question would best be addressed in discussions of pending litigation.

ASBO New York commentary: The Regents and Department are caught between two roles: advocating for the education needs of children and defending the state. So it is unlikely Department staff will answer this question in public space. However, ASBO New York can comment from a policy perspective.

CFE concerned the New York City school district exclusively and the Zarb Commission set a very low financial bar for satisfying the case. As a result legal analyses may find that the case is satisfied by state increases since 2007. However, the more important question is whether the state’s responsibility to provide “a system of free common schools wherein all the children will be educated” has been met. The student results reviewed by the Regents this month showing dramatic disparities in student results by race and socioeconomic status would suggest that the standard of educating all the children is not yet achieved. States responsibility for education suggests the state plays an important role in achieving this standard. This is the challenge education faces.

Department staff presented five Regents priorities to guide the Regents state aid proposal as “The 5 E’s”.

1. Equity

2. Every Student Succeeds Act Implementation

3. Early Learning

4. English Language Learners

5. Efficiency (Initiatives and investments that will enhance and/or streamline Department and school district functions)

Department staff provided slides comparing Foundation Aid payable in 2018-19 versus the full amount due, a difference of about $3.5 billion. Staff asked the Regents if they wanted to increase Foundation Aid or make additional funding within the 5 E’s the Regents have identified as priorities. The Regents debated the use of hold harmless in Foundation Aid and High Tax Aid. Regent Tilles mentioned the impact of the federal tax plan on the more affluent areas of the state because of reduced allowable state and local tax deductions.  Regent Johnson described the tension between low wealth and high wealth school districts in the era of the Tax Cap and SALT.