News and Speeches

    Schools Chancellor Joel I. Klein today proposed a plan for spending $228 million in new education aid available through the State’s “Contracts for Excellence.” $228 million is the portion of new State aid that is subject to the Contracts, an accountability mechanism created by State law that holds school districts accountable for spending education aid on programs and initiatives that increase student achievement, primarily among high-needs students. New York City proposes allocating nearly half of its Contracts funding to targeted class size reduction, one of the five categories towards which districts can devote funds, as designated by State law. New York City principals have indicated that next year they would use Contracts for Excellence funding to hire at least 1,300 new teachers, including the creation of more than 400 Collaborative Team Teaching (CTT) classrooms, in which special education and general education students are taught together by two teachers. 

    “The Contracts for Excellence are based on the recognition that we are accountable for delivering the best possibility for success to the students furthest from it,” Chancellor Klein said. “We have put this principle of accountability for educating all children at the center of our reforms. I applaud the Governor and the Legislature for their leadership and am gratified that the Contracts for Excellence legislation is consistent with the core principles of Children First. It allows us to build on our success over the past five years.”

    After a long-fought battle to obtain equitable funding for New York State’s high-needs school districts, the State this year appropriated substantially more education aid for high-needs districts throughout New York State, including New York City. This year, City schools are receiving a total of about $1 billion in new education aid from City and State sources combined. Of the approximately $700 million in new State aid, $228 million is subject to the Contracts for Excellence; $334 million pays for salary and fringe benefit increases that result from collective bargaining; $104 million pays for special education programs and services; $213 million pays for school-based growth in pre-kindergarten and public charter schools; and $149 million pays for operating expenses such as increased energy costs due to the growth of the school system.

    As part of today’s announcement, the Chancellor proposed a targeted class size reduction plan designed to empower and enable class size reduction across the system, particularly in schools with the greatest potential to benefit. Since 2003, the DOE has redirected $350 million from central and regional budgets to the school level while giving principals increased autonomy over spending decisions. Historically, schools have used more than half of new discretionary dollars to hire additional teachers, a trend that will continue this year. The effort to increase principal autonomy has been a hallmark of the City’s Children First reforms and, when combined with a $13.1 billion capital plan to construct over 60,000 new seats, has helped to reduce class size at every grade level since 2002. By investing in class size reduction, the DOE projects first-year class size reduction that exceeds the annual rate of reduction over the last five years. 

    In addition to class size reduction, Contracts funds may go towards increasing student time on task, restructuring middle schools and high schools, teacher and principal quality initiatives, and increasing full-day pre-kindergarten and kindergarten offerings. More than $57 million in New York City Contracts funds will be directed to increase student time-on-task through programs such as small-group and extended-day instruction. These resources will build on past efforts, including extended day and Saturday Preparatory Academy. Nearly $44 million in Contracts funds will help to improve teacher and principal quality, expanding professional development opportunities for educators citywide. Almost $13 million in Contracts funds will be directed to new middle and high school restructuring initiatives. Since 2003, the DOE has developed nearly 200 new schools at a cost of nearly $150 million, which help the City provide quality educational opportunities to all of its students. About $300,000 in Contracts funds will support the creation of full-day pre-kindergarten seats. Since 2002, the City has created 7,829 additional pre-kindergarten seats, increasing the number of students served by 20%.

    The City’s Contracts for Excellence proposals are available on the DOE Web site at http://schools.nyc.gov. Written comments regarding the Contracts will be accepted at contractsforexcellence@schools.nyc.gov. Parents and community members are also invited to attend a series of public hearings in each of the five boroughs from July 9-12, 2007. A full schedule of dates and locations follows:

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Contact: David Cantor / Debra Wexler (212) 374-5141