New York Governor Eliot Spitzer, who in his State of the State address earlier in the month had promised to “reform” state government, presented a $120.6 billion budget which begins that process.

In addition to proposing major increases in funding for education and children’s health care, property tax relief for middle income homeowners and special aid to distressed cities, Spitzer plans to restructure the funding for health care and reduce spending on the giant Medicaid program.

“This budget makes targeted investments in our future, provides overdue property tax relief to middle class homeowners and drives resources to communities in need,” Spitzer said in defense of his spending plan. “It also makes the tough decisions necessary to bring spending growth under control.”

If the governor’s budget survives the legislative battle that is sure to follow, New York City schools may soon be able to tackle some of the problems they face with the 40 percent increase in state funding they will receive over the next four years. Spitzer’s budget earmarks a total increase of $7 billion for education by 2011. His school aid plan includes the creation of a new Foundation Aid formula that would pump an additional $982 million to the neediest school districts statewide.

“After this unprecedented infusion of resources, the focus of education debate in New York will rightfully shift to accountability and performance in the schools,” Spitzer said.

The new funding will be tied to so called “accountability measures” that require schools to develop a “Contract for Excellence” which will commit officials to demonstrate that funds are spent to produce measurable results, including smaller class sizes, increased student time on task, full-day prekindergarten, teacher quality initiatives, and middle school and high school restructuring.

School districts will also be required to submit to regular assessments by the State Board of Regents, and prepare report cards on everything from their achievement and improvement goals to graduation rates and individual student progress reports that give parents information about their child’s educational progress over multiple years of testing by July 2008.

School superintendents, principals and teachers will also face scrutiny as the Regents monitor their performance and effectiveness. According to Spitzer’s plan, “Those with a strong educational performance will be recognized and encouraged to assist low performing school districts.”


Minimum Standards for Educators

Other educational reforms in the budget include requiring the Regents to establish minimum standards for tenure for educators; creating a Taskforce on Preschool Special Education to review the relationship between preschool special education and other early childhood programs; and the creation of math and science initiatives that will increase the supply of qualified math and science teachers in schools across the state and recognize and reward talented middle school students in math and science.

Parents will also have greater choice on the school they select for their children, as the governor’s budget increases the cap on the creation of new charter schools from 100 to 250, and provides a tuition tax deduction for parents who pay tuition for children in public or non-public schools beginning in the 2007-08 school year.

In addition to raising new revenue from the nickel deposit on drinks, Spitzer plans to fund the initiatives by restructuring the funding for health care. His budget reduces spending on Medicaid from 8 percent over the last five years to 1.7 percent in 2007-08 in an effort to combat fraud, waste and abuse in the multi-billion-dollar Medicaid program. The budget also revamps funding to public hospitals and nursing homes, and other health institutions, and proposes measures that are expected to save the state billions of dollars over the next few years.

“This budget is a mixed bag of good things and difficult choices all around,” said Local 237 President Carl Haynes. “Certainly the state needs to review and change the way it does business, but whether some of the changes highlighted here will happen any time soon is anyone’s guess. It will be interesting to watch the budget debate in Albany, because there are bound to be fireworks over this budget.”

Other Key initiatives in the governor’s budget include the following:

• $165 million over two years for an expansion of the Child Health Plus program, providing access to health coverage for all 400,000 currently uninsured children in New York and streamlining enrollment procedures for Medicaid patients.
  
  
• $1.5 billion in additional property tax relief, including an income-based benefit targeted to middle class homeowners statewide and additional benefits for senior homeowners, the first phase of a three-year plan to provide $6 billion in property tax relief.
  
  
• $50 million in performance-based aid increases targeted to distressed cities, towns and villages, the first installment in a four-year, $200-million program.