Many New Yorkers said they were disappointed by the overall levels of education funds that Governor Pataki called for in his budget proposal yesterday.

At the same time, enthusiasm was expressed for the governor’s proposal on charter schools, which would facilitate the city’s plan to open 50 more of those schools.

Mr. Pataki’s proposed budget offers $280 million in increased school aid next fiscal year for New York City. That figure is $10 million less than the increase in education money that the state Legislature voted for the city this year.

Of the $280 million, about $85 million is meant to pay for annual increases in operating expenses while $195 million is part of the governor’s nod to the Campaign for Fiscal Equity case. The latter component is part of what Mr. Pataki calls his Sound Basic Education Aid Program, to target money for high-needs urban school districts. The $195 million is only 14% of the $1.4 billion in annual increases in school subsidies recommended late last year by a panel of court-appointed special referees in the Campaign for Fiscal Equity’s lawsuit.

A fellow Republican of Mr. Pataki’s, Mayor Bloomberg, had a muted reaction yesterday, but Democratic legislators were fuming.

“I am tired of looking at my watch,” the chairwoman of the City Council’s Committee on Education, Eva Moskowitz, said. “The governor should stop squirming around compliance with the Campaign for Fiscal Equity lawsuit and start talking seriously about New York City’s court-ordered educational dollars.”

Ms. Moskowitz called the proposal’s dollar figures “inadequate.” She also said Mr. Pataki’s desire to create a new Office of Educational Accountability and Efficiency would “create more education bureaucracy under the guise of accountability.”

The council speaker, Gifford Miller, accused the governor of continuing to “shortchange” city students.

The chairman of the state Assembly’s Committee on Education, Steven Sanders of Manhattan, said the governor is apparently “pretending” there is no court order to boost education aid to New York City. He said Mr. Bloomberg should make an “unambiguous, immediate statement that the governor’s proposal is unacceptable.”

“The governor pretends that there was never a CFE case. He pretends that there was never a Court of Appeals decision in that case. He pretends as if there wasn’t a special referee panel appointed by the court,” he said. “What the governor has proposed is business as usual. New York City gets shafted.”

Democratic politicians were not the only ones deriding the governor’s proposal.

The president of the United Federation of Teachers, Randi Weingarten, called Mr. Pataki’s proposal “deja vu all over again.” She said the key players in the Fiscal Equity case should have finished fighting over education funds last year, so that children could already be benefiting from more school aid. Ms. Weingarten was a member of the Zarb Commission, created by the governor to find a solution to the school-funds mandate.

Predictably, the executive director of the Campaign for Fiscal Equity, Michael Rebell, was also disappointed by the governor’s proposal.

“What he seems to be doing is rehashing the same numbers and concepts that he said at this point last year,” Mr. Rebell said. “For a governor who has said he was going to come up with bold ideas, he’s not putting forward anything that has a chance of solving these problems.”

He said even the source of the education funds are “not real,” as much of the money would be coming from video lottery terminals proposed by the governor, but not yet approved by the Legislature.

The governor can amend his proposal in the next 30 days. After that, the Legislature can approve the budget, reject it, or decrease his proposed education spending. Because of a recent court ruling, legislators cannot vote to boost the governor’s spending proposals.

Although New York City observers were riled up yesterday over the schools budget, some applauded the governor’s proposal not to count charter schools approved by the city against the statewide cap on new charter schools. If the change is not implemented, the 100 charter schools sanctioned by state law will be used up in the next few years.

“We applaud the governor for exempting charter schools authorized by the chancellor from the state’s cap,” a spokeswoman for the Department of Education, Michele McManus Higgins, said.

The president of the New York Charter Schools Association, Bill Phillips, said there are 7,400 children enrolled in New York City charter schools and another 8,000 on waiting lists. Not counting chancellor-approved charter schools against the statewide cap of 100, he said, would “remove the greatest source of pressure.”

Mr. Sanders, though, said it’s too soon to get excited. Mr. Pataki’s proposal would require the Legislature to amend the charter school law – something that the assemblyman said is unlikely.

Speech Highlights

SOURCE: GOVERNOR PATAKI

Highlights of the 2005-06 state budget Governor Pataki proposed yesterday to the state Legislature for the fiscal year beginning April 1.

Overall spending of $105.5 billion, counting money from all sources, or 2.4% or $2.5 billion more than in the current year. Counting only state funds, the budget would spend $69.1 billion, or 5.4% or $3.5 billion more than in the current year.

Close a $4.2 billion revenue shortfall in fiscal 2005-06 and reduce projected out-year budget gaps to $2.7 billion in 2006-07 and under $2.8 billion in 2007-08.

Generate $1.9 billion in state Medicaid savings, $1.1 billion from cost containments. Most reductions in the program have failed to win approval in the past in the state Legislature.

Eliminate the 2003 state income tax increase for New Yorkers making more than $100,000 in 2005, a year earlier than the Legislature plans.

Cap Medicaid costs for New York City and the 57 counties outside the city at 2005 levels, with annual growth rates limited to about 3%. Pataki estimated Medicaid savings to local governments at $578 million for fiscal 2005-06.

Raise $1 billion in new revenues, including new or higher fees for using state campgrounds and registering motor vehicles and all-terrain vehicles.

Increase school spending by $526 million, to an all-time high of $15.9 billion, as part of a five-year “Sound Basic Education Aid” program. When fully implemented, in fiscal 2009-10, the plan would provide an additional $8 billion statewide in school spending a year, including $4.7 billion for New York City schools.

Commit to a five-year, $36.6 billion program to make capital improvements in the Metropolitan Transportation System, the state’s highway and bridge system, airports, and transit systems outside of New York City. The plan calls for $19.2 billion for the MTA improvements and $17.4 billion for the other transportation facilities.

Allow a $500-a-year tuition increase in the State University of New York system and a $250-a-year increase in the City University of New York. Pataki promised to introduce legislation to allow annual tuition increases in both systems tied to a higher-education expense index.

Continue the suspension of the elimination of the 4% state sales tax on items of clothing and footwear worth $110 or less. Pataki proposed two sales tax-free weeks on clothing items with purchase prices of exempt items increased to $250.

Introduce a sales tax-free purchase period for energy efficient items like air conditioners and hot water heaters that carry the “Energy Star” designation. Projected savings to taxpayers of $4.2 million.

Proposed establishing eight more gambling halls featuring slot machine-like video lottery terminals, including five in New York City. The Legislature rejected the idea last year.

Creates “Operation SPUR,” an upstate economic development plan using tax credits, tax exemptions, and grants for capital projects to boost industrial facilities, incubators, and commercial centers.

Create a four-year, $1 billion program to re-evaluate the state’s hospital and nursing home system and recommend the closure and consolidation of underused facilities and services.

Two-year extension of the state’s $4.4 billion Health Care Reform Act for hospitals, nursing homes, teaching medical hospitals, and other health-industry purposes. The act is set to expire in June 2005.