GothamSchools — daily independent reporting on NYC public schools

Earlier today, I wondered how the city figured that eliminating planned 2 percent raises for teachers and principals would save $400 million next year, considering that an identical cut to this year’s budget in January was projected to yield just $148 million.

Now I have the answer.

Each time planned raises were reduced — in January from 4 percent to 2 percent, and today from 2 percent to nothing — the city cut next year’s budget by $150 million, according to Department of Education spokeswoman Ann Forte. Together, the two reductions amount to $300 million in savings.

The extra $100 million is what the city set aside this year in case it reached a contract deal with the teachers union to turn Mayor Bloomberg’s intention to give 2 percent raises each year for two years into reality. But without a new contract, the city never had to spend any of this money. After adjusting its budget in January, the department still had about $100 million to roll over to next year.

In addition to the $400 million in salary savings, the city will save about $350 million by cutting school and central budgets, Forte said. (more…)