NYC school board rejects Mamdani's $1.65M

New York City's school board has rejected a $1.65 million technology contract proposed by Mayor Zohran Mamdani's administration. The vote, held this week, failed to secure the necessary approval for the Department of Education to continue using Oracle software for critical HR and enrollment systems.

According to a department spokesperson, the Oracle software supports "mission critical" functions. These include a human resources help center serving over 150,000 employees and an enrollment support center handling about 1,000 daily calls on issues from student transportation to special education. Officials warned that losing access could lead to lost data and prevent families from accessing online enrollment information.

Vote Falls Short Amid AI Scrutiny

The contract failed with nine votes in favor, six opposed, and two abstentions. It fell four votes short of the 13 required for passage. Two mayoral appointees to the Panel for Educational Policy abstained, while three others did not attend the meeting.

The rejection followed fierce public criticism targeting Oracle and its co-founder, Larry Ellison. Opponents cited the company's investments in artificial intelligence and Ellison's political support. This scrutiny reflects growing pressure on the board to examine technology and AI contracts more carefully. Department officials have promised to release new AI and technology guidelines before the first day of school on September 10.

Deputy Chancellor Lindsay Oates urged approval before the vote. She emphasized the system's reliance on Oracle as it welcomes thousands of new hires. "We are worried about the disruption of service if this contract is tabled," Oates said. Department officials stated the service would run through September but did not detail backup plans to avoid disruptions.

Concerns Over Data and Climate

Public commenters raised specific objections. Liat Olenick, a parent and educator, questioned Oracle's environmental footprint linked to AI use and asked if administrators would use AI through the services. "Is it necessary to contract with a company that's fueling the climate crisis and putting New York City students' health and futures at risk?" she asked. An Education Department spokesperson stated there is "no AI use associated with this contract."

Others worried about data protection for sensitive information like names and Social Security numbers. Contract documents state Oracle's cloud software was implemented "as a proactive measure to safeguard this information" instead of using email. Board member Raysa Rodriguez, a Mamdani appointee, noted the contract requires Oracle to delete the department's data within 90 days of expiration. She voted yes, saying a new agreement would "further protect the data that we have."

Board Members Explain Their Votes

Some panel members elected by parent leaders voted no, arguing the city should control its own technology systems. "The staff that manages it should be public servants," said panel member Naveed Hasan.

Mayoral appointee Primo Lasana said he wished the contract had been delayed for more careful consideration but ultimately voted in favor. The two appointees who abstained, Crystal Vera-Montalvo and Karla Cordero, did not respond to requests for comment.

Panel chair Greg Faulkner expressed frustration with the outcome, worrying the department would now have to scramble to fix its HR systems. He acknowledged the heightened caution around tech contracts, stating, "Anything we do with technology gets scrutinized." The $1.65 million deal is a small part of the department's roughly $13 billion in outside vendor spending. Its failure suggests the board may not automatically support the new mayor's agenda, a departure from the typical alignment seen under previous administrations.