Fixing New York's State Education Aid Dinosaur: A Proposal

New York State provides aid to local schools through a confusing maze of aid programs that are, according to many commentators, unfair to the neediest school districts, often defined as those with many students who are poor or otherwise "at risk." For example, New York City, which, by any measure, is one of the neediest districts, currently receives less aid per pupil than the average district in the state. On January 9, 2001, in the case of Campaign for Fiscal Equity vs. State of New York (719 N.Y.S2d 475, 150 Ed. Law Rep. 834), the New York State Supreme Court brought new salience to this issue. In a strongly worded opinion, Justice Leland DeGrasse ruled that the current educational aid system violates the state's constitutional requirement to provide a "sound basic education" and needs to be reformed. Among other things, Justice DeGrasse labeled the failure to account for the needs of at-risk students "one of the great failings of the State school financing system" and declared that "New York City does not receive State aid commensurate with the needs of its students." This policy brief proposes a new formula for distributing educational aid in New York State, a formula designed to direct aid to the districts that, through no fault of their own, are in the greatest need of assistance. High-need districts are those with high educational costs or low property wealth. This policy brief begins by explaining why the cost of education varies from one school district to the next. It then shows how variation in the cost of education across districts can be incorporated into a state education aid program that brings all districts up to some minimally adequate performance level. This approach is applied to New York State. Specifically, I propose a new education aid formula for Newe York State that would bring all the school districts up to an adequate performance defined with reference to the new Regents graduation standards. This policy brief also explores various ways to share the cost of this program between school districts and the state.

Financing Higher Standards in Public Education: The Importance of Accounting for Educational Costs

Performance standards have been at the center of recent debates on educational reform. Many states have implemented new performance standards, often based on student test scores, and a district's state aid is sometimes linked to its success in meeting the standards. This focus on performance is designed primarily to promote better student achievement by holding schools accountable. However, a school's performance is influence not only by the actions of its administrators and teachers but also by factors outside its control, such as the nature of its student body. Thus, a focus on performance is inevitably unfair, especially to cities, unless it accounts for the impact on performance of factors outside the control of school officials. To be fair, school report cards and performance-based state aid systems must distinguish between poor performance based on external factors and on school inefficiency. Many state aid systems have taken one step in this direction by compensating districts with low wealth, a factor over which they have no control. However, school district performance is also influenced by the cost of education, which varies widely from district to district based on local wage rates, student characteristics, and other external factors. Existing state aid formulas either ignore these factors altogether or else use ad hoc corrections, such as "weighted pupil" counts, that account for them partially at best. In this policy brief, we explain why a performance focus and educational cost indexes must go hand in hand, discuss alternative methods for estimating educational cost indexes, and show how these cost indexes can be incorporated into a performance-based state aid program. We show, using data from New York State, that controlling for costs in the design of school aid formulas is crucial to enable central cities to reach educational adequacy standards.

How Equitable is The Education Finance System in New York State?

This policy brief provides an overview and evaluation of the education finance system in New York State. The brief addresses four broad topics: student performance disparities in New York State, the nature of the New York State education finance system, the contributions of the New York foundation aid formula to educational equity, and the benefits to all taxpayers in New York State from education finance reform

Education Finance Reform in New York: Calculating the Cost of a 'Sound Basic Education' in New York City

In June 2003 the New York State Court of Appeals altered the education-finance landscape with its ruling in Campaign for Fiscal Equity v. New York. This ruling called for “[r]eforms to the current system of financing school funding” designed to ensure “that every school in New York City would have the resources necessary for providing the opportunity for a sound basic education.” This ruling addressed a wide range of issues, but also declared that “the funding level necessary to provide City students with the opportunity for a sound basic education is an ascertainable starting point.” This policy brief addresses the question: How can this funding level be determined? Any calculation of the cost of a “sound basic education” must begin with a definition of this term, that is, with a decision about the educational standard every district is supposed to reach. This is a decision to be made by lawmakers, with input from the Court of Appeals. We begin with an overview of the issues that arise in making this decision, and then turn to the main concern of this policy brief, namely, how to calculate the cost of a sound basic education once it has been defined by lawmakers.

Now You See It, Now You Don\u27t: Why Do Real Estate Agents Withhold Available Houses from Black Customers?

This paper develops a new approach to testing hypotheses about the causes of discrimination in housing sales. We follow previous research by using data from fair housing audits, a matched-pair technique for comparing the treatment of equally qualified black and white home buyers. Our contribution is to shift the focus from differences in the treatment of teammates during an audit to agent decisions concerning an individual housing unit. Our sample consists of all units seen by either a black of a white auditor in the 1989 national Housing Discrimination Study. We estimate a multinomial logit model to explain a real estate agent\u27s joint decisions concerning whether to show each unit to a white auditor and to a black auditor. We find evidence that real estate agents make and act upon inferences about a customer\u27s preferences on the basis of the customer\u27s initial inequity and that agents practice redlining, defined as the withholding of units in integrated neighborhoods. We find little evidence to support the conclusion that agents discriminate because of their own prejudice, but some evidence that they discriminate because of the prejudice of their white customers. More importantly, we find strong evidence of statistical discrimination; agents withhold houses from blacks when the probability of a successful transaction is perceived to be low

How New York State Stole $20 Billion from School Children in New York City, Part 2

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars

The Impact of Class Size on Teacher Retention

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars

A Circuit Breaker for New York State?

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars

The Final Verdict on STAR?

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars

School Spending Matters!

It’s Elementary is a series of essays on topics in education and education policy. The main focus is on education finance in New York State, but general research findings in education and education policy issues in several other states are also discussed. John Yinger, Professor of Economics and Public Administration at the Maxwell School, Syracuse University is the author of most of these essays, although a few are written by or co-authored with other scholars