New York City and the United Federation of Teachers, which represents the city's teachers, announced that they have not reached an agreement on teacher evaluations by the deadline. The Governor has said that any school district that does not reach an agreement would lost state funding; around $450 million for New York City. Both sides blamed the other for the failure of the talks, which came on the second day of the first school bus strike in 30 years. The teachers have been working without a contract since 2009. If the state takes away funding, the deal could lead to larger class sizes and cuts in support staff and programming.
See "No Deal on Teacher Evaluations; City Risks Losing $450 Million", Al Baker and Marc Santora, The New York Times, January 17, 2013