Chair Lee questions Comptroller on class size compliance costs

Great, thank you.

We've also been joined by my council member Maloney.

Okay, so really quickly, I just have a few questions on class size compliance.

So the administration, do you agree with the administration's $122 million estimate for Dewey's cost to meet 70% class size compliance next year?

So we estimate that ultimately this will cost us a billion a year on the expense side by 2030.

I think at that point they have it in there for $800 million.

So we do see a shortfall at that point.

For FY27, I also believe we have a slightly higher estimate than they do.

Oh, sorry, but was the billion for 100%?

I believe that we peak at a billion for 2030, correct?

That's right.

We assume it's going to be what they originally said of a billion dollars in 2030.

Got it.

Okay.

For fiscal year 27, the $122 million should be sufficient to hire the 1,000 teachers that they've said they need.

But we are waiting for their class size report that comes out later this month.

Okay.

To confirm.

Do you have an estimate for the cost of the proposed differential payments to the teachers in exempted classes?

I don't think we have an estimate because we're waiting for the class size update, which I think could happen any day.

It's supposed to come in June.

But I think it would be on the order of high single-digit millions.

Am I in the right range?

For the differential, we calculated it just based on...

Those exempted classes.

Last year, or in the current school year, and found it to be about $25 million.

But again, as the controller said, we're waiting for the updated class size report and the number of exempted classes going forward.

Okay, great.

And with an extended timeline, do you have a new estimate on the cost to meet 100%?

Oh, that's the $1 billion.

That's the $1.30 number, yeah.

Okay.

That'll be a billion a year.

By the way, the capital cost as well, right, because we have to build out for some schools.

Under the administration, they originally projected that as an $18 billion capital expense.

Now, I believe in November, they offered an update saying they found some more efficient use of space that would run at about $14 billion.

We have nothing like that currently in the capital plan.

I believe it's about a billion and a half in there.

So by any measure, on the capital side, we're going to need to put more money in.