When city school officials explain this week how they plan to spend about $700 million in new state funds, Governor Spitzer’s hard-fought accountability measures will play a smaller role than some had expected.

The state had reported in April that $317 million of the new funds would be governed by Mr. Spitzer’s accountability plan, called the Contract for Excellence. But new numbers released Thursday will likely leave just $228 million to be governed by the contract’s restrictions, a city spokeswoman, Debra Wexler, said.

The new influx is the result of 14 years of litigation by the nonprofit Campaign for Fiscal Equity, which won its case for more equitable state funding last year. Mr. Spitzer drew up the Contracts for Excellence as a way to ensure the new money was tied to the policies specified in the lawsuit, including class size reduction and teacher quality. A big part of the drop, $60 million, comes from a loophole that allows the city to use the funds for charter schools, Ms. Wexler confirmed. Other provisions specify further portions of the $700 million that can be excluded from the accountability plan, such as more than $38 million slated to fund experimental programs.

A lawyer who prosecuted the equity suit, Michael Rebell, called the city’s plans a disappointment. “Why should money going to charter schools be less accountable than money going to public schools?” he said.

The Campaign for Fiscal Equity had opposed the charter school loophole, and its executive director, Geri Palas, said yesterday she would continue to fight it.

Ms. Wexler defended the city’s decision to spend on charter schools. “These are high-needs kids, and this is a model that works,” she said.

The city will release its specific plans for spending the money this Thursday, and a series of public hearings will vet it before a final version is sent to the state July 15. Ms. Palas called the time frame — four days of hearings ending three days before the deadline — “outrageous.”

But Ms. Wexler said a significant portion of the money, $110 million, has already been submitted for review through individual principals, who received it directly in their budgets. Parents and teachers review the budgets.

An advocate of smaller class sizes, Leonie Haimson, said many of the city’s neediest schools did not receive any of the new funds, but Ms. Wexler said that is not the case.

A spokeswoman for Mr. Spitzer, Christine Pritchard, did not immediately have a comment last night.