Joe Williams, executive director of political advocacy group Democrats for Education Reform, praised Mr. Rebell's approach.
Michael Rebell, who battled the state for 13 years, said he isn't necessarily headed back to court.
And perhaps tellingly, the city has opened its schools to Mr. Rebell and his five-person research team.
Since then, however, Mr. Rebell and others have argued that the state has failed to fulfill its obligations.
Mr. Rebell first sued in 1993 in a fight that became known as the Campaign for Fiscal Equity case.
"Gov. Cuomo goes around saying schools have to do more with less, do more with less, " Mr. Rebell said.
The effort represents the next chapter and a new approach in what has been Mr. Rebell's long involvement with school funding.
"There doesn't seem to be any reason for this (penalty) anymore, " Rebell said.
Determining what if any effect those cuts have and whether schools are using their aid efficiently are among Mr. Rebell's new goals.
New York City school officials wouldn't comment on Mr. Rebell's study.
Mr. Rebell, now executive director of the Campaign for Educational Equity at Teachers College, Columbia University, agreed that the answer may not lie in setting a dollar amount.
Mr. Rebell isn't alone in seeking changes in school funding.
The lawsuit was filed by attorney Michael Rebell, who successfully argued in a previous landmark case that the state had been violating the constitution by shortchanging New York City students.
To Mr. Rebell, that means not just providing arts or science classes required by the state for graduation but also features such as student government and student newspapers which are missing at some New York City schools.
Mr. Rebell said his intention is to persuade lawmakers in Albany to reevaluate whether the state is providing every student with the opportunity for the "sound basic education" that courts said is guaranteed by the state constitution.
Attorney Michael Rebell, who represents the parents, said he hoped the state would drop the penalty, especially in light of Cuomo's announcement this week that, to avoid further cuts, he would empower Education Commissioner John King to impose an evaluation system June 1 if the city and union don't agree on one by then.
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