IBO: N.Y. School Capital Plan Hinges on State Bond Referendum

Spending increases in New York City's proposed $12.8 billion five-year capital plan for schools rely heavily on a statewide referendum, according to the Independent Budget Office watchdog organization.

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The City Council, which could modify the School Construction Authority's plan, is reviewing it. Total funding for the five years of the proposed plan would be almost $1 billion, or 8.5%, higher than under the current plan covering 2010 through 2014.

The state legislature established the authority in 1988 to build public schools and manage design, construction and renovation of capital projects in the city's public school buildings, half of which were constructed before 1949.

Consistent with the prior plan, the proposed plan incorporates about equal shares of state and city funds, but also includes $800 million for the city from Gov. Andrew Cuomo's $2 billion New York State Smart Schools bond proposal, which will be on the statewide ballot in November.

The capital plan allocates $490 million of this anticipated funding to enhance technology in schools through infrastructure projects and software purchases; and about $300 million to facility restructuring to expand capacity for pre-kindergarten classroom space, more than half of the funds devoted to such reconstruction work in the plan.

Mayor Bill de Blasio has called for universal pre-kindergarten and a tax on the wealthiest New Yorkers, which would need approval from state lawmakers. De Blasio and Gov. Andrew Cuomo have been at odds over universal pre-K, which Cuomo wants to fund statewide, and de Blasio's proposed cutbacks in funding for charter schools.

According to IBO, if voters approve the state bond, this additional funding would allow SCA to redirect $490 million of funding previously earmarked for technology towards building 4,900 more seats to reduce class size.

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