Feds: NY could lose $700M in school funding

A file photo of school exams in progress.

Photo credit: AP, 2005 | A file photo of school exams in progress.

New York could lose $700 million in federal Race to the Top money if it fails to meet the timeline for goals outlined in its school reform agenda, U.S. education officials said Monday.

The state has fallen short in two key areas: Its new teacher evaluation plan is being challenged in court, and its proposed education data system, praised for its innovation, is delayed because, among other things, it has undergone "shifts in strategy," the federal education department said in a report.

"New York has a chance to be a national leader or a laggard and we are only interested in supporting real courage and bold leadership," said U.S. Education Secretary Arne Duncan.

Federal officials said New York's funding was not in immediate danger, but that its slow progress is of serious concern. Florida and Hawaii also have been singled out; Hawaii's funding is considered at risk.

State Education Commissioner John B. King Jr. said he intends to fulfill the obligations set forth in the application.

"It's disappointing, but not discouraging," he said of the federal education department's assessment. "We have to get this done, and we will. We knew the Race to the Top wouldn't be easy. But our students are counting on us."

The state's new teacher evaluation plan -- linking teacher assessments to student achievement -- has been tied up in the courts for months. But the battle could soon be resolved, said Richard Iannuzzi, president of the New York State United Teachersunion.

"There is a very reasonable proposal on the table right now," he said, regarding a particular part of the evaluation system now in place. "If the will is there, I think it could be resolved tomorrow. And our will is there."

Dennis Tompkins, a spokesman for the state education department, said, "It's inappropriate to comment on the status of those talks while litigation is pending."

Race to the Top grants were awarded to 11 states and Washington, D.C. -- with the money distributed over four years. Each winner committed to specific goals and federal officials are monitoring their progress though phone calls, visits and other assessments.

The competitive grant program was created under the Obama administration in 2009, in part to close the achievement gap and better prepare students for college.

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