NEW YORK, NY January 22, 2008 —REPORTER: Governor Spitzer unveils his budget proposal this afternoon in Albany.

With a $4.4 billion budget gap to close, reports have surfaced that the governor may not be ready to provide city schools with the amount of funding originally promised.

SPITZER: It is going to be extraordinarily close, from New York City's perspective, to what we had hoped to do based upon last year's numbers. And I think that at the margins we are making tough choices. The investment in education continues unabated.

REPORTER: City schools will reportedly get a 7% increase in funds or $8.1 billion.

But this is still $100 million less than advocates expected. Under a settlement with the Campaign for Fiscal Equity, New York agreed to increase funding to city schools that had suffered from under-funding for the past 14 years.

Meanwhile, hundreds of concerned parents and educators rallied at the city's Education Department, protesting a racial and economic achievement gap in the city's middle schools.

The group wants the governor to provide the full amount of funding promised to the city's low income schools.

Parent Victoria Busque says schools have already lost a "generation of kids" after 14 years of improper funding.

BUSQUE: Now that it's time to come down, it's critical that the governor and the legislature give all the money to the second phase. Our children just can't wait any longer.