The key here is not the amount of money spent, but HOW it's spent:

New York State’s highest court ended a landmark 13-year court battle over education financing today by releasing its ruling that an additional $1.93 billion must be spent each year on New York City’s public schools.

The figure is much lower than the $4.7 billion a year that lower courts had said was needed to give the city’s children the opportunity for a sound basic education guaranteed by the State Constitution.

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November 20, 2006

N.Y. Is Ordered to Pay $1.93 Billion for City Schools

By DAVID HERSZENHORN

http://www.nytimes.com/2006/11/20/education/20cnd-school.html

New York State’s highest court ended a landmark 13-year court battle over education financing today by releasing its ruling that an additional $1.93 billion must be spent each year on New York City’s public schools.