any event, the State points us to no evidence on how much of
any savings on special education would be invested in more
productive inputs in City schools.
We need not speculate further on the possible saving from special
education placement, however, for the State's argument on Board
of Education mismanagement fails for a more basic reason. As
the trial court and Appellate Division recognized (187 Misc 2d at
81-82, 295 AD2d at 18-19), both the Board of Education and the
City are "creatures or agents of the State," which delegated
whatever authority over education they wield ( City of New York v
State of New York, , 86 NY2d 286 (/nyctap-cgi/nyctap.cgi?
86+286), 289-290 [1995]). Thus, the State remains responsible
when the failures of its agents sabotage the measures by which it
secures for its citizens their constitutionally-mandated rights.
As our ensuing discussion of remedy shows, various reforms
unrelated to financing -- some already in the works -- may be
part of the package of legislative and administrative measures
necessary to ensure a sound basic education to New York City
schoolchildren. The requirement stated in CFE, however, was for
plaintiffs to "establish a causal link between the present funding
system and any proven failure" (86 2 at 318), not to eliminate
any possibility that other causes contribute to that failure.
Moreover, in every instance where the State has relied on
purported political or managerial failings of the City or the Board
of Education, closer inspection of the details casts doubt on
whether the City could eliminate the failing without the State's
help or would have developed the failing without the State's
involvement. The issue of special education is illustrative. The
trial court held that "the primary causes of New York City's
overreferral and overplacement in restrictive settings are a lack of
support services in general education and State aid incentives
that tended until recently to encourage restrictive placements"
(187 Misc 2d at 95). This conclusion is supported by the record
and was not disturbed by the Appellate Division. Thus, the State
cannot blame overreferral on the institutional culture of the Board
of Education and City schools without acknowledging that this
culture has evolved to its present condition partly in response to
the funding system. At the very least, under CFE, this problem
does not constitute a cause sufficiently independent from the
State's funding system to overcome plaintiffs' case.
Similar reasoning disposes of the State's argument that the Board
of Education's inefficient management of personnel is the
supervening cause that, rather than the funding system, accounts
for deficiencies in the teaching input. The State points to