After months of bad budget news from both the state and the city, here's a big piece of excellent news: the State Assembly just passed a budget that restores all of the cuts the state had made to the city's schools!

The city's schools are now set to receive a $643 million budget increase as part of the Campaign for Fiscal Equity settlement; previously, Governor Spitzer announced he would reduce that increase by $350 million. The restoration of aid, which comes after months of intense lobbying and protest, should let principals who are deciding which services to eliminate breathe a little easier. But Mayor Bloomberg's cuts, which could amount to as much as 8 percent of next year's budget, still stand.