Education Funding

N.Y. Appeals Court Rebuffs Lower Court’s School Aid Ruling

By John Gehring — July 10, 2002 4 min read
  • Save to favorites
  • Print

A state appeals court in New York has reversed a landmark school finance decision that had ordered lawmakers to overhaul the state’s school funding system.

A panel of the Appellate Division of the Supreme Court in Manhattan ruled 4-1 on June 25 that a trial judge had overreached in his January 2001 ruling that New York’s system for financing schools denied students in the 1.1 million- student New York City schools “a sound, basic education.”

The ultimate outcome of the case will have implications not only for the city’s schools but also for school systems across the state because it will help shape the direction of New York’s school funding priorities.

After the trial judge ruled that the school finance system was unconstitutional, some school leaders in New York estimated it could take another $3 billion annually—an amount roughly equal to the state’s record aid increase to schools over the past few years—to satisfy the requirements of the ruling.

In the earlier ruling, Justice Leland DeGrasse of the New York Supreme Court, a trial-level court, wrote that the city’s schools were plagued by “chronic defunding over the last 20 years,” and that students should have access to an education that prepares them for more than simply low-wage jobs.

Students, he added, should be able to function as “civic participants” who can understand concepts such as DNA testing and state ballot initiatives. (“N.Y. System of State Aid Thrown Out,” Jan. 17, 2001.)

But writing for the majority in the appellate court’s decision last month, Justice Alfred D. Lerner said that while the state must provide a “minimally adequate educational opportunity” for students, Justice DeGrasse had used an “improper standard” in reaching his findings.

The state is not required, Justice Lerner wrote, “to guarantee some higher, largely unspecified level of education, as laudable as that goal might be.” He went on to write that high school dropouts could still become productive citizens, and that “society needs workers in all levels of jobs, the majority of which may be very low-level.”

The majority also cited the state’s argument that only an 8th grade education was needed to understand basic jury instructions, and that reading a newspaper or understanding political messages in campaigns did not require the skill level of a high school graduate.

Moreover, the appellate court ruled, the plaintiffs in the case—a coalition of New York City parents and advocacy groups represented by the Campaign for Fiscal Equity—had “failed to prove that deficiencies in the city’s school system are caused by the state’s funding system.”

In overturning last year’s ruling, the majority of appellate-court justices found that the poor socioeconomic backgrounds of many city students, and the mismanagement of resources by school administrators, were more likely than the state’s school aid system to adversely affect students’ opportunities.

“Although there was evidence that some schools have no science laboratories, music rooms, or gymnasia,” Justice Lerner wrote, “there was no proof that these conditions are so pervasive as to constitute a systemwide failure, much less one that was caused by the school financing system, or one that can be cured only by a reformation of that system.”

‘Temporary Setback’

Michael A. Rebell, the executive director of the New York City-based Campaign for Fiscal Equity, described much of the majority opinion as “callous.”

“We are outraged on behalf of hundreds of thousands of New York state students who struggle in overcrowded classrooms with underpaid teachers and empty libraries,” Mr. Rebell said in a statement.

Later, in a conference call with reporters, he added: “It’s a very limited notion to say the minimum is good enough for these students and we don’t have to aim higher.”

He called the decision a “temporary setback” and vowed to appeal the decision to the New York Court of Appeals, which is the state’s highest court.

Mr. Rebell noted that his coalition of parents and advocacy groups had initially lost its case in 1995, but won last year after the state Court of Appeals recognized the groups’ arguments that the state constitution implied the right to a “sound basic education” and federal civil rights laws bar states from spending money in a way that has a discriminatory impact.

The eight-month trial generated volumes of testimony from education experts..

Mr. Rebell praised the dissenting opinion in the June ruling, in which Justice David B. Saxe wrote that the trial court’s fundamental conclusions “can only be reversed by ignoring either much of the evidence or the actual circumstances of the city’s student population.”

But Alfred Lindseth, a senior partner in the New York firm of Sutherland Asbill & Brennan who represented the state in the trial, said the court clearly recognized that lack of money isn’t the fundamental problem with the city’s schools..

“The total focus is always on more money,” Mr. Lindseth said. “No one was paying attention to the root of the problem, which is how local districts run the schools. They ought to be more focused on how the money is spent.”

Michael McKeon, a spokesman for Gov. George E. Pataki, said in a statement that since taking office in 1995, the Republican governor has provided a total increase of $2.1 billion in state aid to the New York City schools over that period.

“Governor Pataki has made it clear,” he said, “that we will continue to invest in education and continue to fight for more reforms regardless of the outcome of this case, because it is the right thing to do for our children.”

A version of this article appeared in the July 10, 2002 edition of Education Week as N.Y. Appeals Court Rebuffs Lower Court’s School Aid Ruling

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
Hiring, Retention, and Fill Rates: A Data-Driven Sub Strategy
Explore what keeps substitutes coming back and hear how one district rebuilt its substitute hiring process and improved its fill rate.
Content provided by Frontline Education
Early Childhood K-12 Essentials Forum Early Childhood Education: Building Essential Skills for Success
Join this free virtual event to examine the biggest challenges in supporting young children, from preschool through elementary school. 
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Absenteeism Webinar
Attendance Isn't an Attendance Problem
Boost attendance by strengthening relationships, belonging, and support with practical strategies from Doug Fisher & Nancy Frey.
Content provided by Corwin

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Averting a Shutdown, Congress Punts Federal Spending Decisions to December
Federal funding talks will continue into December as Congress agrees to avoid a shutdown.
2 min read
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections, at the Capitol in Washington, Tuesday, Sept. 1, 2026.
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers at the U.S. Capitol on Sept. 1, 2026, as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections. The continuing resolution carries over the current year's funding levels for education programs into the first two months of the federal fiscal year that starts Oct. 1.
J. Scott Applewhite/AP
Education Funding Education Department Will Keep Sending Most K-12 Funds Through Its Own System
The agency will send formula funds through its own system again despite program shifts to other agencies.
5 min read
A sign from the General Services Administration is posted outside of the Department of Education headquarters in Washington, D.C. on Friday, July 17, 2026.
A sign installed by the General Services Administration is posted outside the Department of Education headquarters in Washington on July 17, 2026. Despite shifting its programs to other agencies, the Education Department will send billions of dollars in formula funds for schools through its own grants portal on Oct. 1, rather than a portal run by the Department of Labor.
Eric Lee for Education Week
Education Funding Video What's in Store for School Funding for 2026-27?
A new education tax credit, federal budget negotiations, and more are in store.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
Eric Lee for Education Week
Education Funding Trump's Education Department Is Letting Tens of Millions of Dollars Expire
Education Week found the agency didn't spend its full budget last year and appears on track to do so again.
10 min read
A collage-style illustration of images of the U.S. Department of Education building, the U.S. Capitol building, and dollar bills on top of a wooden school desktop with a pencil on it and a school bus underneath. The dollar bills appear to have been punched out with a hole punch in a few areas, and those missing circles are sprinkled on the desk and school bus below.
Illustration by Emily Wright for Education Week + Getty