New Tax Deal Averts Some Layoff: Critics Say It’s Not Enough
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March 30, 2009
Albany, NY — Education advocates say the tax deal reached over the weekend will avert some layoffs but it still falls billions of dollars short of what is needed. A vote could come as early as today on the plan, which would raise taxes on New Yorkers making $300,000 a year or more.
Karen Scharff with the Alliance for Quality Education says the tax plan should make a difference in the short term, because it should head off at least some of the more than 10,000 education layoffs that have been forecast for districts across the state.
"We are glad to see that there is some directed aid at school districts, and that will help stave off some of the layoffs and other kinds of budget cuts that school districts were going to face."
The plan will raise an estimated $4 billion per year through a temporary tax increase on New Yorkers making $300,000 dollars to $500,000 per year. The higher tax rates would expire in three years.
New York has a legal commitment to equalize education opportunities across the state through what is known as the "foundation formula." Scharff gives Gov. Paterson and legislative leaders credit for agreeing to a progressive income tax, but says their plan does not generate enough revenue.
"There's not enough money in this budget plan to fund the foundation formula for schools, which is critical. Secondly, the funding from the increased income tax runs out in three years — and that's well before the state will have met its commitment to fully fund the formula."
As the deal stands now, foundation formula funding that was cut last year will not be increased for the next two years. Denise Gibbs, an assistant superintendent from Wyandanch, says that leaves New York school kids at a competitive disadvantage in a tough global economy.
"At this time, when technology is advancing so quickly, we're competing against students from Japan and China and Finland, yet we are cutting back on the students we serve. We can't afford that."