Will the City Stiff Me, Too?
I had a client reach out to me today, concerned about this news article, in which the DOE is refusing to pay its teachers $900 million in back pay that was promised back in 2014. She was concerned that, in light of this news, the DOE might renege on its obligation to pay her the 2019-2020 school year tuition reimbursement that an IHO awarded this summer.
My response was, “Don't be nervous.” There is little reason to believe that the DOE will be unable to meet its obligation to pay past tuition awards and hearing decisions because of any supposed financial troubles. First, my understanding of NYC municipal financing is that there are line items on the DOE's budget for things like teacher salaries and building upkeep. In contrast, parents and private schools count as "vendors" from the perspective of the city's payment department when we submit a hearing decision for implementation. There is a big difference between the DOE not paying its employees and the city itself running out of money to pay external vendors and contractors.
To add to that, the DOE's refusal to pay teachers’ back wages is something that's being reported on (1) in the midst of a union dispute between the teachers and the DOE's bargaining committee and (2) at a time when the return to in-person schooling is a hot-button issue. It's quite possible that this is a posture that the DOE is using as a way to put pressure on its teachers to cave in other ways and return to their full-tilt schedules before it's safe to do so from a public health perspective.
Finally, I have heard nothing from other special educational professionals about any fears that the DOE will not pay out its obligations from impartial hearings. We have a lot of connections to other special education law firms, private schools, and psychologists/service providers who all rely on getting payments from the DOE. Everyone is having a similar experience with payments coming much slower this year, however, there are no alarm bells being sounded about whether the payments will ultimately be made.
The bottom line is that, if the DOE defaulted on its obligations, there would be enormous repercussions on federal funding streams. A great deal of federal money comes to NY state on the condition that it fulfills certain obligations with regard to special education students. I find it very hard to imagine a world where the DOE refuses to pay out what it owes, because it would jeopardize those funds.
Jonathan Gottlieb
Partner
195 Montague Street
14th Floor
Brooklyn Heights, NY 11201
Jonathan@GottliebFirm.com
(646) 820-8506