Tag Archives: new york state united teachers

Comparative Public School Spending from FY 1997 to FY 2019: In New York The More They Get, the More They Feel Entitled To, and The Less They Provide in Return

Let’s start this post the way the prior one ended, with the quote from the ACLU, referring to the level of public school funding in New York in FY 2019.

https://www.nyclu.org/en/news/ny-cheating-its-schools-out-billions-dollars

Every year, the government of New York shirks its legal responsibility to adequately fund our public schools.

In 2006, the New York State Court of Appeals ruled New York was violating students’ constitutional right to a “sound and basic education” by not putting enough money into its schools. The court ordered that schools were entitled to $5.5 billion more in unrestricted state funding, known as Foundation Aid….

But year after year, state lawmakers substituted politics for the Foundation Aid Formula, shortchanging schools and hurting students who need the money most.

That is, simply put, not true.  In the 1990s New York City school spending was low, in part because a state school aid formula discriminated against the city’s children.  Judge Leland DeGrasse ordered the city’s school aid to be increased by $1.9 billion, based on the low funding levels of the time.

https://trellis.law/judge/leland.g.degrasse

As a trial judge, he ruled against New York’s system for financing public schools in Campaign for Fiscal Equity v. State. Ultimately, the decision, which sought to overhaul the state aid-to-education formulas, was appealed to the New York Court of Appeals, which resulted in an additional $1.9 billion in state aid awarded to New York City schools.

I know this history because I provided data to the Campaign for Fiscal Equity, the same kind of data that will be discussed below.  Much to my disappointment, however, CFE turned out not to be interested in either fiscal equity or better schools – just a richer deal for those working in the public school system.  So despite another $1.9 billion (and another $1.9 billion and another $1.9 billion and another $1.9 billion) they kept suing. In exchange for political support for his election for Governor, Eliot Spitzer then settled the suit for even more money.  No judge ever ordered it, or found that was what was required. It was a political deal, with a massive increase in pension benefits for teachers as part of the same deal, not better education.

That deal, which multiplied by a bunch of prior retroactive pension increase deals (now starting up yet again), was for me a kind of last straw. So what was the level of school spending in NYC, by category and compared with other places and the past, in FY 2019 when the ACLU claimed that the people of New York were cheating those who worked in education out of $billions?  Read on and find out.

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Local Government Education Expenditures: 2017 Census of Governments Data

In FY 1972, when a large number of Baby Boomers were still in school, U.S. elementary and secondary school expenditures equaled 4.59% of U.S. residents’ personal income.  That fell to a low of 3.69% of income in FY 1984, after the Boomers exited and enrollment shrunk.  The figure increased to a non-recession (recessions depress income) high of 4.51% of income in FY 2004, when a large share of the Millennials were in school, before falling to around 3.9% of income each year from FY 2014 to FY 2017, after they exited.

New York State, however, has diverged from the pattern.  In New York City elementary and secondary school expenditures were around 5.0% of personal income each year from FY 2013 to FY 2017, actually higher than the 4.3% of personal income in 2004.  The rest of NY State averaged 6.4% of income in FY 2004, but was only modestly lower at just under 6.0% of personal income from FY 2015 to FY 2017.  New York’s elementary and secondary school expenditures were already high, compared with the rest of the country, in FY 2004, but the gap has increased since – despite an economy that has favored NY State in general, and New York City in particular, increasing the personal income that spending is being divided by.

New York’s public school expenditures are now at an extreme, even as the city and state face recession.  Rising pension and retiree health care expenditures, as a result of a long series of retroactive pension increases for teachers, are one key reason.  A high level of public school employment, despite falling enrollment, with the schools used as a job program and source of dues revenues, is another.

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Public School Finance Over Two Decades, in NYC And Elsewhere, Based on Census Bureau Data: Anyone Remember “School Reform”?

Remember school reform?  The idea that funding for public schools, in New York City and across the country, would be increased, and in return the kind of education those schools were expected to provide would rise as well, even for poor and disadvantaged students.  “No child left behind.”  Republicans such as George W. Bush were in favor, but so were Democrats such as Teddy Kennedy and Barack Obama.  But nobody talks about it anymore, and for good reason.  In New York City, and some places like it, the schools – and the teachers union — grabbed vastly more money, but once that was locked in they rejected any increased expectations, or any expectations at all, and have since demanded still more money.  In some other states anti-tax politicians reversed higher school funding, though not completely, and left the quality of education lower than it had been decades ago.

Nationwide the reversal was driven by three trends.  Since FY 2007, with the children of the Baby Boomers (aka the Millennials) exiting school, public school enrollment has been falling in many places, and barely increasing nationwide.  So the only generation that matters, the Baby Boomers, wants money and attention shifted to other things — even as the schools and the politicians they support, in places like Upstate NY, want more money funneled through the increasingly empty schools as a jobs and retirement program.  Throughout their adulthood, this generation either failed to fund the pensions teachers had been promised, or retroactively increased those pensions to benefit the generations cashing in and moving out – themselves.  As a result much of the increase in school funding per student that did occur actually went to retired school employees, rather than to the classroom. All this came to a head with the Great Recession, followed by a perpetual fiscal crisis across the country.  One associated with falling tax burdens in some places, but rising tax burdens in New York. School reform is over across the country, but in New York City it was probably a fraud to start with.

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New York School Spending: Entitlement Feeds More Entitlement And It’s Never Enough

Over the past 25 years some types of Americans have become richer and richer, at the expense of others who have become poorer and poorer – to the point where average life expectancy is starting to fall.  One might have imagined that at some point those who have been taking more and more would conclude that enough is enough, feel obligated to do more in return, and become concerned about the circumstances of others who are less well off.  But that doesn’t seem to happen.  Not among the richest generations in U.S. history, those born from 1930 to 1957, who continue to be completely focused on increasing their own share of the take.  Not among the richest people, the top executives who sit on each other’s boards and vote each other higher and higher pay.  And who anointed themselves “the makers” and everyone else “the takers” within two years of having been bailed out by the federal government, even as “the takers” saw their standard of living plunge, and then demanded another round of tax cuts that mostly benefit themselves.

And not among New York’s unionized public employees, particularly those working in its public schools, who have become the most politically powerful – and selfish – of all self-interest groups at the state and local level here.  Power and selfishness seem to go together in part because no one dares to offend the powerful, by pointing out how much they have taken relative to everyone else, and the connection between others having less and them taking more. So they can continue to feel aggrieved, entitled, resentful, unobligated – and somehow demand even more without embarrassment.  There seems to be no end to it.  This post uses Census Bureau data to show how far it had gone, as of three years ago.

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Long Term Pension Data for New York and New Jersey to 2016: Teacher Pensions

Across the country taxpayer pension costs for public schools are soaring, and state and local taxes are being increased while money actually spent on education is being cut to pay for it. You see it in California, where a huge tax increase “for education” went exclusively to pensions, and in Illinois, where the City of Chicago’s schools are on the brink of bankruptcy. You see it in Kansas and Oklahoma. In some cases soaring pension costs are the result of past taxpayers’ unwillingness to fund the pensions teachers had been promised, promised for some in lieu of Social Security, which those teachers will not be eligible to receive. In other cases pension costs are soaring because politically powerful teachers’ unions cut deals with the politicians they controlled to drastically increase pension benefits, beyond what had been promised and funded. In many cases there is a mix of both factors.

New York City happens to be the place where the teachers’ union, the United Federation of Teachers (UFT), is perhaps the most guilty, and taxpayers are the least guilty, with regard to the pension crisis. And it the place where the burden of teacher retirement is the greatest. The result is large class sizes despite extremely high public school spending, and a host of services that New York City children do not receive. With virtually all New York politicians in on the deals that have left the New York City Teachers’ Retirement System (NYC TRS) among the most underfunded in the country, however, there has been a desperate attempt to cover up the damage. So the consequences of retroactive pension increases for NYC teachers (and police officers and firefighters) have shown up not so much in education (and policing and firefighting), but in every other public service in New York. And all of this is under Omerta.

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