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In a landmark decision that the Campaign for Fiscal Equity (CFE) called a "victory for every child in the state of New York," the Court of Appeals, in a 4-1 decision, ruled that New York City school children are not receiving the constitutionally-mandated opportunity for a sound basic education. Many education groups, including the United Federation of Teachers (UFT), submitted amicus briefs in support of CFE to the Court of Appeals.

The Court of Appeals directed the Governor and Legislature to ensure that every school in New York City have the resources necessary to provide the opportunity for a sound basic education. To comply with this directive, the Governor and the Legislature must determine the cost of providing a sound basic education in New York City, and they must enact appropriate funding and accountability reforms by July 30, 2004.

The ruling overturned the decision of the Appellate Court and reinstated State Supreme Court Justice Leland DeGrasse's 2001 ruling that all children are constitutionally entitled to the opportunity for a "sound basic education."

To determine whether New York City schools provided the opportunity for a sound basic education, the courts reviewed evidence on the "inputs" that children in New York City school receive-teaching, facilities and instrumentalities of learning-and the resulting "outputs"-test results, graduation, and dropout rates.

"Tens of thousands of students are placed in overcrowded classrooms, taught by unqualified teachers, and provided with inadequate facilities and equipment," wrote Chief Judge Judith Kaye. "A showing of good test results and graduation rates among these students-the'outputs'-might indicate that they somehow still receive the opportunity for a sound basic education. The showing, however, is otherwise."

One of the key points of contention in the CFE case was how to define a sound basic education. The Court of Appeals, in a previous decision, offered a template definition of a sound basic education as " the basic literacy, calculating, and verbal skills necessary to enable children to eventually function productively as civic participants capable of voting and serving on a jury."

Justice DeGrasse's ruling for CFE in January 2001 defined the requirements of a "sound basic education" in terms of citizenship and employment. According to DeGrasse, high school graduates must be able to evaluate complex issues that may arise in jury service or voting and they must also be able to obtain and hold competitive employment.

The Appellate Division in their reversal, applied a more minimalist standard to define a sound basic education compared to that used by Justice DeGrasse. According to the Appellate Division, the skills required to enable a person to obtain employment, vote, and serve on a jury, are imparted between grades 8 and 9.

The Court of Appeals strongly disagreed with the standard applied by the Appellate Division. "Students require more than an eighth grade education to function productively as citizens," wrote Chief Judge Kaye.

Since the CFE case only dealt with New York City public school students, the Court of Appeals limited their remedy to New York City. "Here the case pre sented to us, and consequently the remedy, is limited to the adequacy of education financing for the New York City public schools, though the State may of course address Statewide issues if it chooses," wrote Chief Judge Kaye. NYSUT will insist that lawmakers must use this opportunity to ensure that all children throughout the state have an opportunity for a sound basic education.

Timeline: Campaign for Fiscal Equity

1999

On October 12, 1999, the trial of CFE v. State of New York began in a Manhattan Supreme Court.

2001

On January 10, 2001, Justice Leland DeGrasse ruled that the state's funding system fails to provide New York City public school students with the opportunity for a "sound basic education." Governor Pataki announces that the state will appeal the decision.

On October 25, 2001, five justices from the Appellate Division heard oral arguments in the appeal.

2002

On June 25, 2002, the Appellate Court, in a 4-1 decision, reversed Justice DeGrasse's ruling that New York State has failed in its constitutional obligation to provide New York City public school students with an opportunity for a "sound basic education." CFE announces that they will appeal the decision to the State's highest court-the Court of Appeals.

2003

On May 8, 2003, the Court of Appeals heard oral arguments in the CFE case.

On June 26, 2003, the Court of Appeals overruled the decision from the Appellate Court and reinstated Justice DeGrasse's ruling.