A New York State Supreme Court judge ruled recently that the state school aid system is illegal because it short-changes New York City students by more than $1 billion per year.

In his decision Jan. 10, Judge Leland DeGrasse said New York State’s current aid formula fails to provide city schools enough money for the “sound basic education” required by the state constitution.

For students and employees in the city’s schools, a fair funding formula could mean money to expand support services, repair buildings, relieve overcrowding and reduce class sizes — but the decision may be appealed.

The lawsuit was filed in 1993 by the Campaign for Fiscal Equity with the support of DC 37 and Board of Education Employees Local 372. At the time, DC 37 filed a “friend of the court” brief in support of the action.

The judge agreed with the CFE that the state aid formula illegally discriminates against New York City schools. The formula, which is still in use, awards more dollars per student to districts outside New York City — over $1,000 per child more than it pays for each city pupil.

The CFE lawsuit pointed out an imbalance in school funding: While over 38 percent of the state’s student population is taught in New York City public schools, the city’s schools receive only 33 percent of state education funds.

The judge also found that by discriminating against black, Hispanic and Asian students, Albany’s aid formula violates civil rights laws.

The disparate funding meant fewer resources for New York City’s public school students during a period of unique social problems, overcrowded classrooms and increased educational expectations.

One result, according to CFE, is that city schools have nine computers for every 100 students while suburban schools have 17.5.

City students have half as many books in their school libraries as suburban students. Many city schools do not even have a library because the space is used for classrooms due to overcrowding.

The decision was not well received outside of New York City, because one apparent solution would take funds from upstate and suburban districts to provide increases for the city. Gov. George E. Pataki announced Jan. 23 that he would appeal the decision, but as PEP went to press, no appeal had been filed.