State funds city school construction

In a last-minute deal, State legislative leaders finally agreed to include $11.2 billion in funding for New York City school construction in the state budget.
After a recent court ruling, on the lawsuit brought by the Campaign for Fiscal Equity, which called for more money to operate and build city schools, the lawmakers in Albany drafted the budget with $11.2 billion for NYC school construction over five years. The budget, which will have to pass both the Assembly and the Senate, is expected to reach the governor in time for the April 1 deadline.
“This money to build new schools – if passed by both houses and signed into law by Governor Pataki – is a great deal for this and future generations of New York City schoolchildren. This excellent agreement is a result of real and impressive leadership from Speaker [Sheldon] Silver and Majority Leader [Joseph] Bruno who rolled up their sleeves, got to work, and found a way to deliver for our students. Because this bill now goes to Governor [George] Pataki who has expressed strong support for New York City schools, I think we can all look forward to starting years of new school construction projects across New York City very soon,” Mayor Michael Bloomberg said on Wednesday, March 29th.
Pataki and the legislature have a 10-day window to review all elements of the budget and hammer out their differences. Once approved and signed, the State will provide $6.5 of the $11.2, with the city picking up the rest of the tab.
With the funds, 21 construction projects – nine of which are in Queens – presumable will be allowed to resume, after being put on hold when the State had not initially included funding in the budget.
“The school construction funding that we have assisted in securing meets a critical portion of the state’s obligation arising from the Campaign for Fiscal Equity lawsuit, and when coupled with the additional increases in operating aid, will help ensure that every child in New York City has the opportunity to achieve a world class education from excellent teachers in safe, modern schools,” said Sen. Serphin Maltese whose district has some of the worst overcrowding in the city.
Under a unique bonding plan, the State would issue $2.6 billion in bonds, $1.8 billion of which would go to construction of city schools. The city would also be allowed to borrow up to $9.4 billion from the New York City Transitional Finance Authority, and the State would use its annual payments for city school construction to guarantee the new bonds, issued by the independent corporation.
“That’s good news and progress,” said Geri Palast, executive director of the Campaign for Fiscal Equity. Calling the proposed capital funds “extraordinary,” Palast praised the Mayor and State lawmakers for their efforts, but was quick to point out that the budget included only one-tenth of operating aid suggested by the court last week. “We are quite pleased that the buildings will get built, but we need more than just buildings; we need what goes on in the buildings.”
The budget, drafted before midnight on March 28, also included a slight increase in operating aid funding for city schools – up to $450 million – but the figure does not come close to the amount the State Appellate Court ordered the governor to consider – between $4.7 and $5.63 billion.