New York reaches long-sought settlement over school funding. Here's how much it will grow

ALBANY - New York will add $4 billion in school aid for its nearly 700 school districts over the next three years in a settlement with education advocates over a lawsuit that started seven year ago.

Gov. Kathy Hochul announced Thursday that the lawsuit brought by New Yorkers for Students' Educational Rights will end as the sides have agreed to boost school spending in the coming years.

The move drops a bitter fight that dates back to 2007 when the Campaign for Fiscal Equity won a historic case to require an infusion of money for New York City schools to provide a "sound and basic education."

"This settlement closes a long chapter of inequity and demonstrates my administration's commitment to wiping the slate clean and fully funding public education using a responsive model that takes districts' unique needs into account," Hochul said in a statement.

New York this year is spending nearly $30 billion in state aid to schools, up 11% from the year prior and by far the most per capita in the nation.

But school advocates have long railed against funding disparities and argued there was inadequate support for poor districts.

So the agreement will require the state to add money to the Foundation Aid formula, the base aid that districts get determined by their demographics and need.

The plan will bring Foundation Aid spending to $23.2 billion by the 2024 fiscal year after the state budget approved in April included an infusion of cash into the aid formula.

“This settlement sends a strong message to New York lawmakers that we expect them to deliver the promised increases in public school funding over the next two budget cycles,” said Greg Little, counsel for the Education Law Center, which was part of the lawsuit.

The settlement comes as New York is flush with cash due to federal stimulus money, rising tax revenue and an increase in income taxes this year on the wealthy.

It also comes as Hochul seeks a full, four-year term next year and looks to solidify support among special interest groups. On Wednesday, in fact, Hochul said she spoke about the settlement with Cynthia Nixon, the actress, education funding advocate and 2018 Democratic primary candidate.

The litigation started in 2014 after education groups contended the state reneged on the 2007 court case and promises by then-Gov. Eliot Spitzer, who vowed to fully fund foundation aid not only in New York City but across the state.

When fiscal woes hit the state and funding increases lessened, the groups sued — and ex-Gov. Andrew Cuomo countered that New York was well exceeding any funding commitment for schools, with spending up 60% over the past decade.

The settlement, advocates said, allows the lawsuit to resume if the state reneges on its funding promise.

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More:Why NY’s school-aid formula is flunking

Joseph Spector is the Government and Politics Editor for the USA TODAY Network's Atlantic Group, overseeing coverage in New York, New Jersey, Pennsylvania, Maryland and Delaware. He can be reached at JSPECTOR@Gannett.com or followed on Twitter: @GannettAlbany

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