A proposed law to overhaul costly teacher disciplinary hearings would give Albany a break by forcing school districts and the union to pay part of the multimillion-dollar tab, The Post has learned.

The state Education Department currently pays $6 million a year to arbitrators who rule on disciplinary cases.

But a bill introduced by Assemblywoman Cathie Nolan (D-Queens) and Sen. John Flanagan (R-Suffolk) — at the request of Education Commissioner David Steiner — would require school districts and the teachers union to equally split the hearing costs with Albany.

Both Mayor Bloomberg and the union — still chafing over state cuts in school funding — slammed the measure as unfair cost-shifting.

“The state education’s proposal is nothing more than a cost-shift to localities — a new, unfunded mandate at a time when we should all be trying to eliminate unfunded mandates,” said Bloomberg spokesman Mark Botnick.

“Further, this proposal would discourage school districts from removing ineffective teachers from the classroom,” Botnick added.

Albany lawmakers and educrats are defending the bill.

“This cost-sharing process will provide incentives for completing a hearing in a timely manner and will, overall, help to contain hearing costs,” a legislative memo says.