State judge sends education budget back to City Council for revote

NEW YORK — The city budget process violated state law, a judge ruled Friday, as he returned the education budget to City Council for a possible revote in an unheard-of turn of events that comes just weeks before the nation’s largest school system returns to the classroom.

Impact: Now, the Council can either redo the schools budget vote, or stick to funding levels it used last school year, according to an order by New York Supreme Court Justice Lyle Frank. The order does not prohibit amendments to other areas of the budget as necessary, though it only vacates the education portion. City attorneys previously argued that it was impossible to change one part of the budget without impacting other agencies.

The city violated state law when it used an emergency declaration to bypass a Department of Education governing board and instead bring the schools budget directly to the Council, according to Frank's three-page order. The judge's decision came after a lawsuit by a group of parents and teachers.

Last year, the department’s operating budget was higher than the fiscal year 2023 budget currently under contention, totaling roughly $31.5 billion. That figure fell to about $31 billion this year, largely due to a drop in allocated federal funds.

Though the judge’s order reverted the city’s education budget, it included some carve-outs. The court order does not prevent the city from using additional DOE funding from other sources, like the federal government, or stop the implementation of a new dyslexia program. The city previously argued that returning to last year’s budget would threaten such programs.

Details: The lawsuit centered on a specific provision in state education law, which requires that the department’s budget be approved by the Panel for Educational Policy before the Council votes, though the law allows for exceptions in emergencies. While Schools Chancellor David Banks issued an emergency declaration earlier this year, Frank said in the order it was not “a valid exercise of the Chancellor’s powers.”

During a Thursday hearing, Frank had expressed concern that the declaration did not refer to a specific emergency, adding that using “boilerplate” language to bypass the panel meant effectively nullifying its function in the budgeting process.

City attorneys countered that the declaration explained the city’s reasoning. The declaration states “there is not sufficient time to complete the public comment period and obtain Panel approval,” and that delaying the process would “have a harmful effect on the operation of schools.” The city also noted the panel eventually voted to approve the budget.

The city will appeal the decision, a Law Department spokesperson said. In the meantime, Council members and Mayor Eric Adams’ administration will have another shot at the controversial education budget, which sparked public outcry after it cut hundreds of millions of dollars from schools. Many Council members who voted for the budget in June have since come out against the cuts, following public pushback.

Adams has said the cuts are in response to declining student enrollment, which plummeted during the pandemic. His administration expects further declines. The cuts meant a loss of at least $215 million, though city Comptroller Brad Lander said earlier this week the actual figure may be more than double that number.

In a statement Friday, a City Hall spokesperson said the mayor’s office was disappointed in the judge’s ruling.

“Students, teachers, and parents need finalized budgets to ensure they are on track for a smooth opening next month,” the statement read.

United Federation of Teachers President Michael Mulgrew called on Adams to restore the cuts.

“Now is the time for Mayor Adams to work with the City Council to restore the funds to our public schools,” he said.