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Notes -
A major discrimination settlement has been reached with NYC candidate teachers.
The NY Post is reporting that New York City has reached a $1.8B bias settlement with roughly 5200 Black and Hispanic teachers who failed a New York State teaching certification exam, which prevented them from serving as teachers in NYC public schools. At least 225 would-be teachers will receive payments exceeding $1M (not including ancillary benefits like lifetime pensions for jobs that were never performed).
I am not a lawyer, and I have no familiarity with this kind of litigation, but I was surprised at the settlement. It's possible that NYC got spooked by recent high-profile discrimination lawsuit outcomes (jury verdict against Equinox here, settlement with Fox News here), and it's possible the legal fees and likely result of a trial made settling prudent for NYC. But I wonder whether NYC politicians (or bureaucrats) failed to mount a vigorous legal defense out of ideological sympathy for the plaintiffs.
I also don't see how this kind of settlement - available only to failed candidates based on their race - can satisfy an Equal Protection standard. Won't failed white candidates have a discrimination claim?
Anyway, there's no shortage of culture war angles to this story. NYC famously pays $38,000 per public school student / year, with mediocre outcomes; once again the tax payer seems to get a raw deal. There are the perennial issues around disparate racial impact from ostensibly race-blind hiring practices. The NYT doesn't seem to have reported on this, which raises questions about media coverage. And so on.
I want to focus on a different question, though: to what extent (if at all) do such high-profile, lottery-style bonanzas undermine the case for honest, low-paid toil among the working class? I have a pet theory that the seeming arbitrariness of financial success in America (and perhaps other countries) is a major factor (not the only one!) among prime working age men exiting the labor market. Events like this feel deeply unfair - why work your whole life if you can get paid to not work? And nobody wants to participate in a system that's rigged against them.
$1.8B/5200 teachers = 350k/ea on average. $1.8B/8M people in NYC = $250/ea. Not nothing, but not that much really. Certainly less than the amount from one year's income tax that goes to education.
The idea that all 8 million New Yorkers shoulder an equal share of the tax burden or, indeed, that everyone chips in at all is... quaint.
The more correct assessment is what other things could have been done with $1.8 billion.
And what second-order effects might there be from showing that the city will make massive payments to literally under-qualified workers rather than defend a lawsuit.
Or what happens if more of those high-earners who pay most of the taxes decide to move away.
Adding to your comment from a linked article:
NYC has 3.8M city income tax payers
Average burden to each of the 41k top 1%: $18,000
Average burden to each of the 410k 10-1%: $1,141
Average burden to each of the 3.3M 0-90%: $180
Those 3 points lay on a graduated curve, but still. Oooof.
The NYC budget for FY 2023 is 37B, so the settlement (probably paid out over time) represents 5% of this years budget.
Also notable: NYC/NYS spent over decade fighting the case. The state was detached at some point. The case originated in the 1996's, and became a class-action. The implied argument was that the test was not designed to be g-loaded, nor was it confirmed to be a predictor of classroom success, which lead to unfair disparate impact. In one item, applicants were asked to explain the meaning of an Andy Warhol painting. 90% of white test takers passed the 80 question test, while 53% of Blacks and 50% of Latinos passed.
I'd be surprised that this case has hung around this long, but I imagine it was getting appeals at EVERY STEP where each appeal can add a year or so by itself.
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