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NYC Students Pay The Price For Cuomo’s Ambition

Gov. Cuomo says he has made up his mind about the millionaires tax – he’s against it. Saying that continued taxation would push New Yorkers to leave the state, he recently said nothing could make him support extending the millionaires tax.

Think about that for a minute. Do you really believe that residents and businesses are likely to leave the state because a tax that has been in place for two years is going to be continued? Have you noticed real-estate prices in lower Manhattan dropping precipitously as all the millionaires have fled since 2009, when the tax was first enacted? Of course not.

But a recent poll found that 72 percent of registered voters in New York support continuing the tax, so it’s clear the governor is indeed taking a stand that carries some political risk. Why would he do that? Why would he say, as he did, “The fact that everybody wants it, that doesn’t mean all that much”? The answer has to be that he is counting on the support of the super-rich, and he’s not going to push any policies that make them nervous. Support for what? Let’s just say that Cuomo is ambitious.

So, what does this have to do with education? Well, of course, without more than $4 billion in revenue in the next year from the millionaires tax, schools across the state, but especially in the city, are looking at huge cuts to education. I’m a public school teacher and have seen the effects of budget cuts firsthand. But it is as a parent that I am most outraged.

As the parent of a second-grader at a neighborhood public school in Brooklyn, I’ve seen huge changes in just the short time my daughter has been in school. When we toured the school the year before she began, there were 20-22 students in the kindergarten classes we saw (yes, we counted). When she began the next fall, there were 25 kids in her class. Last year, there were 27, and this year, 29. Her teachers, all of whom are dedicated and hard-working, appear exhausted every afternoon, and I feel like I’m watching them burn out before my eyes. And we are told there will be more cuts in January, and then again in June? It’s hard to fathom.

Cuomo’s response to parents who complain about budget cuts is to note that New York State spends too much on education for too little in the way of results anyway, so what’s wrong with cutting the funding? In his State of the State address this year, he noted that New York is “number one in spending but 34 in terms of results.”

There are a few reasons this argument is nonsense. First of all, as Education Week analyzed, when you adjust for the demographics of the student population as well as regional costs, New York actually comes in fourth in overall spending and second in outcomes — not first and 34th. New York has a much higher percentage of students who live in poverty and students with special needs than the national average, and those students tend to score lower on standardized tests and receive extra federal funding. So raw numbers regarding their scores and amount spent per pupil will make New York look both underperforming and overspending, but those numbers are misleading.

More important, however, is that the New York State’s spending average is brought way up by the wealthier districts, some of which spend upwards of $40,000 per pupil. The Byram Hills School District, where Cuomo sends his daughters to school, spends about $6,000 per year more than New York City on each student.

And here’s the kicker. How is Byram Hills dealing with the cuts to education certain to result from Cuomo’s decision to cut taxes on the super-rich? The district is raising more revenue through local property taxes. In fact, wealthier school districts around the state are opting out of the current law capping property tax raises at 2 percent a year. The Westchester supervisor in the County town of Bedford (which includes the Byram Hills school district), said, “We should be able to dictate our own financial future,” explaining why the county voted itself a waiver from the cap.

In Bedford, the average home value is almost $1 million dollars, and the average individual income is about $280,000 a year. In other words, Bedford has just voted to continue a version of the current millionaires tax in order to support its school system, which is already paying $6,000 per year more than New York City for each student. So far, there has been no exodus from Bedford reported in the media.

Watching the success of Occupy Wall Street in recent weeks, it occurred to my wife and me that ordinary people — just parents of a kid in public school — can organize and push back. We’re not able to camp out in Zuccotti Park for the next few weeks, but we can let the governor know what we think of his plan, and we have persuaded others to join us. Today, Election Day, we’ll be in front of the governor’s New York City office (from 3:30 to 5:30 p.m. at 40th Street and 3rd Avenue). We’re bringing our kids. We’ll be making some noise and engaging in some street theater (selling cupcakes to make up the shortfall — at a dollar apiece, we only need to sell 1.4 billion!). We need to convince the governor that his political future depends on the success of the state he is running, not the campaign contributions of the top 1 percent.

  • http://pulse.yahoo.com/_Y6PHEO3YBUGVWJJHQEFBKOHQGE Robert

    We need to focus on driving costs down for education. We need to apply the restraints on the system that are used in business. We need to focus on using industry to train people for employment. We need to cut the number of hours children are in school. I have seen studies that children forget 90% of the details they are taught in class after only 60 days. We need to stop equating dollars to results. It is not the teacher fault it is the systems fault.

  • il flerpolo

    NY is second in the nation for “outcomes”?  So what’s the problem, apparently NY education is doing great (“when you adjust for the demographics of the student population as well as regional costs”)!  

  • il flerpolo

    In all seriousness, the tax issue is extremely complex.  It turns on the question of how “elastic” the taxed behavior is.  Income itself is extremely elastic under a system of tiered, progressive marginal tax rates.  That is, it takes extremely high marginal tax rates to remove the incentive to earn more money.  Mobility is a different matter.  People move in and out of New York state all the time.  The last I checked, outflows had higher income than inflows.

  • Clay

    Well said, Adam!

  • Anonymous

    Cuomo is positioning himself for a 2016 run against the Republican incumbant or to replace Obama … a socially liberal, fiscally conservative candidate. With aa 62% popularity rating when every other elected offical is in the 20% range he gets a free pass. He needs enormous funds to run and it’s the millionaires who fund elections. Unless his popularity tumbles you can expect more of the same …

  • Joe Burzell

    Why the hell should some people pay a millionaires tax to support the better schooling of other people’s children? If people don’t like the overcrowded public schools in NYC and can’t buck up for private, then move to a less-expensive part of the USA.  You know, the responsible middle class makes economic decisions as to family size which should be a great shame on our society. Do you think these poor downtrodden masses make the same consideration? Do you think the progeny of their single-parent families are owed some special schooling to make up for the complete denial of the responsibility of marriage by their parents?  The insanity of white liberals never ceases to amaze me.  They would tax their brethren out of existence and for what?

  • bee

    Really? Ugh! Short-sighted and hateful much?

  • MattituckT

    The rich tax drains $ from the private sector reducing investment and job creation.

  • Penny’s mom

    Here’s another reason why the rich are not apt to leave.  According to Forbes, 5 of the top 10 elite private schools are located in NYC.  These families want their children in these schools so that they get not only a good education but also get to network with the future movers and shakers.  Cuomo’s concerns are totally unsupported.

    And to Robert who thinks we need to use business principles to run education that’s exactly what the ed reformers have been trying to do.  And look what has happened – we’ve become a test prep society that provides our children with a narrow education and our standing on international tests has not improved.  Children are not widgets and schools are not little retail shops. 

  • Owen

    Excellent post!  Unfortunately, the tax cut for the rich will drive middle and upper-middle class people out of the city in search of better schools.

    Sorry I missed the event.  Keep organizing, I’ll be there next time!

  • emCasale

    Very interesting post; you raise very valid points about the demographics of the NY student population. Politicians too frequently fail to understand the needs of the “average” citizen, and the needs of public education, and statistics are often swayed by the wealthier districts that far from represent the typical NY student.

    I am currently a grad student studying to become a teacher, and your post resonates with a constant theme amongst future educators’ circles.

  • emCasale

    You make a great point that there are abundant opportunities to reduce cost within the education system. Instead of taking the “use it or lose it” approach that results in schools buying Kindles for the student population, or disposing of near-new classroom furniture in an attempt to “burn through” their budget, the administration needs to focus on needs and more appropriate funding allocation.

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