Charter schools, settlement funds expected to figure into New York schools' financial picture

The annual battle over education spending in New York is taking shape, with divvying up the state's $5 billion windfall from bank settlements among the issues to watch.

New York spent about $22 billion on education last year, about $1 billion more than the year before. Advocates are looking for $2 billion more in the budget Gov. Andrew Cuomo will propose later this month, including a share of the surplus.

The Board of Regents sets education policy, but the budget process lets the governor make his priorities known.

Cuomo is promising an aggressive education reform agenda in the new year. The state's largest teachers union is bracing against the possibility of more charter schools and changes to the teacher evaluation system.