ALBANY (AP) -- New York has been named a surprise finalist for potentially billions of dollars in federal Race to the Top funds, even after failing to improve its application by expanding opportunities for charter schools.
The U.S. Department of Education announced the 16 finalists Thursday. Getting into the finals doesn't mean New York is certain to get some of the money, but it's a major step toward winning a share of the $4.35 billion in education reform funds.
New York officials will make a direct pitch for a slice of the funding March 15, said a spokesman for U.S. Sen. Charles Schumer.
The state Legislature had refused to approve Gov. David Paterson's proposal to raise the cap on the number of charter schools and other measures favored by the administration of President Barack Obama. Paterson said that without those steps, New York lost its best chance for up to $700 million in federal funds at a time when state school aid is slated for a $1 billion cut. The total state budget for schools is just more than $20 billion.
"If ultimately successful, we could use this funding to continue to make the needed investments our children need to get the education they deserve," said Austin Schafran, spokesman for the state Senate's Democratic majority. Legislative officials were surprised by the news.
Paterson wanted to more than double the number of charter schools allowed from the current 200. But he was strongly opposed by the New York State United Teachers union and other school funding advocates.
Charter schools are public schools run by private companies and partnerships. They are designed to be innovative and free of some traditional restrictions on lengths of school days and years. They also often employ nonunion workers. When families choose charter schools, the per-pupil school aid flows with the child and away from the traditional school they attended.
The new federal grants are designed to reward and spur states to lift student achievement by developing strong standards, get high-quality teachers into the classroom, and turn around low-performing schools, according to the Obama administration.
The money is part of Obama's economic stimulus program, and a second round of applications will be accepted in June. If New York doesn't get a grant, it could reapply then.
There was no immediate comment from Paterson.
The U.S. Department of Education named 16 finalists Thursday in the first round of its "Race to the Top" competition, which will deliver $4.35 billion in school reform grants.
Selected from a pool of 41 applicants are: Colorado, Delaware, the District of Columbia, Florida, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina and Tennessee. The winners will be chosen in April, and a second round of applications accepted in June.
"These states are an example for the country of what is possible when adults come together to do the right thing for children," U.S. Secretary of Education Arne Duncan said.
The grants are designed to reward states that have adopted and will continue implementing innovative reforms to improve student performance.
The money is part of President Barack Obama's economic stimulus law, which provided an unprecedented $100 billion for schools. Much of that has gone toward preventing teacher layoffs and addressing other budget concerns. The $4.35 billion "Race to the Top" fund is targeted specifically for education reform.
Applications were read and scored by panels of five peer reviewers. Those with the highest average score were selected to visit Washington later this month to present their proposals. The Education Department said it expects no more than half of the money to be awarded in the first phase of the competition.
Duncan said they are setting a high bar in the first phase and anticipate few winners.
"But this isn't just about the money," Duncan said. "It's about collaboration among all stakeholders, building a shared agenda, and challenging ourselves to improve the way our students learn."
Duncan has said the money could go to a total of 10 to 20 states.
The Education Department asked states to concentrate their proposals on four areas prioritized in the Recovery Act: adopting standards and assessments to better prepare students for careers and college; getting high-quality teachers into classroom; turning around low-performing schools; and creating data systems to track performance.
States also were required to be legally permitted to link student performance data to teacher evaluations.
Critics have questioned the timing, saying the administration is out of touch with state budget needs in putting forward billions in reform at a time when many districts can barely afford basic necessities.
Florida's K-12 education budget is facing a roughly $1 billion shortfall, including a $778 million reduction in local property taxes because of falling real estate values. The rest is due mainly to increased enrollment from an influx of Haitian children displaced by the earthquake there and former private school students whose parents no longer can afford tuition.
"You can always say now is not the right time for change," said Amy Wilkins, vice president for government affairs and communications at The Education Trust. "But the fact is that improving education is sort of a linchpin in improving the economic health of the country. So we have to do this now."
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