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December 6, 2011

Tax code changes could mitigate against school budget cuts

by Philissa Cramer, at 6:03 pm

It’s not the millionaire’s tax that some parents have pushed for, but it’s something.

Gov. Andrew Cuomo announced today that he would overhaul the state’s tax code to reduce the tax rate on middle-income earners and increase taxes on the highest earners. Cuomo estimates that the changes will add $2 billion a year to the state’s coffers — funds that can go to schools and other public services.

UFT President Michael Mulgrew was among the chorus of people who quickly signaled their support for the proposal. He called the plan “a wide-ranging solution to the state’s budget problems” and said it would “help ensure that children in our public schools will begin to see restorations from the devastating education cuts of recent years.”

But a separate tax on high earners known as the millionaire’s tax, which Cuomo has vowed not to renew when it expires at the end of the month, has generated significantly more, about $4 billion a year. That means the state is still facing a funding shortfall of as much as $1.5 billion, and schools are likely to feel continued budget pressure.

The advocacy group Alliance for Quality Education, which supported a lawsuit to bring additional state funding to city schools, said further tax changes are necessary to generate enough funds to cover schools’ needs.

“An essential measure of the effectiveness of this plan will be whether it allows the state to restore the damaging and inequitable cuts that were made to schools across the state,” AQE’s executive director, Billy Easton, said in a statement. “We must get back on track to meet our obligations to provide a quality education to all students — not only to some.”

Already, the city Department of Education is implementing a 2 percent midyear budget cut, and officials have been instructed to figure out how to shave another 6 percent off of next year’s budget. City officials blamed the scale of this year’s cuts on state and federal cutbacks. Last year, Cuomo proposed slashing $600 million from the city schools, which would have reversed all recent gains in state funding.

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  • Anonymous

    what lawsuit do you mean?  AQE was not a party to the CFE suit.  Unless you mean submitting an amicus brief…

  • Los Flerpos

    school closures lawsuit, probably. 

  • Philissa Cramer

    I should have written “supported a lawsuit …” I am updating now and will add a link as well.

  • Larry Littlefield

    Now that taxes have been increased $2 billion, what will Mulgrew say when education services are once again cut to pay for ever-increasing pension costs?  Will he have the decency to say “in your face, suckers!”

    Meanwhile, there are rumors that some staffers are suggesting that Bloomberg push through another substantial increase in property taxes next year (over and above the automatic increases) to stave off devastating service cuts, as the bill for Generation Greed’s debts and pension increases continue to come due.  Quinn is against a property tax increase, according to the report.

  • Los Flerpos

    “what will Mulgrew say when education services are once again cut to pay for ever-increasing pension costs?”

    I assume he’ll roll out the usual press release, i.e., “Once again the Mayor has shown that he is not interested in spending money where it matters:  in the classroom.  The Mayor continues to waste millions of dollars on consultants while class sizes continue to rise.”

  • Larry Littlefield

    And in response the Mayor will say…nothing, because he was in on the pension deal too, thereby joining the Omerta.

    Instead he’ll say something like higher class sizes are not a problem, and slashed classes and programs weren’t needed anyway.  Do we really need pre-K?

  • Abc

    Have the charters pay their fair share
    Get rid of consultants and administrators
    Stop paying four times for unneeded principals
    Stop paying for unneeded testing
    Generation Greeds debts and pension increases were agreements made during collective bargaining between the city and the unions.
    In life some people get good deals and some end up with the sh—y end of the stick.
    Get rid of the mayor who is killing the New York City school system

  • Larry Littlefield

    Well there is an idea — eliminate principals.  If teachers show up they show up, they show up.  If they teach, they teach.  Pretty much what the situation has been.

    If an honest accounting were done, it would show that (like Lindsey) Bloomberg killed the schools by agreeing to 25/55.

    “Generation Greeds debts and pension increases were agreements made during collective bargaining between the city and the unions.  In life some people get good deals and some end up with the sh—y end of the stick.”

    The former statement is not true — making pension negotiations part of collective bargaining is illegal.  As for the shitty end of the stick, that’s why we need to give up on the public schools and stop trying to improve them.  Agreed?

  • Abc

    You are starting to lose it big time. Who said anything about getting rid of principals just that your mayor set it up to have four instead of one. I gave you four ideas to save money but your OCD is showing as you go back to your same old stuff.
    No public schools work all over the place but not in the city. No one complains on the Island, Westchester, Rockland etc. 
    What is your experience in education to say If they teach,they teach? Pretty much what the situation has been. I resent it when someone speaks about something they know nothing about.
    I would never disrespect a banker and say what you said about teaching. I don’t know enough about the banking world to make such a statement. You know nothing about the education field except to resent the pensions that were earned.
    Time and time again you go back to the numbers game how is that working for you?
    Why don’t you ever answer direct questions but constantly harp on things that were done years ago. 
    If someone gives you something and you benefit from it what should you do? Give it back? 
    Larry Littlefield says it’s not fair so give it back.
    HAHAHAHA. Hows it feel?

  • Abc

    The Stick

  • Guest

    Abc, you are not very smart, are you.

  • Pingback: In Case You Missed It: State Tax Deal Could Mean Better Ed Budget, Federal Test Results “Blow to Bloomberg’s Legacy”, 25 Schools On the Chopping Block « EdVox

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