The issue came to a head in December when the city sought to qualify for a federal grant program by testing out the new evaluation system on a set of 33 failing schools.

WSJ: Teacher Evaluation Deal Reached

The schools lost that increase from last year because the United Federation of Teachers union and Mayor Michael Bloomberg failed to agree to a teacher evaluation system by a deadline set in state law.

WSJ: Cuomo, Legislature promise tax cuts in NY budget

The governor had set a January deadline for school districts to comply with a 2010 state law requiring an evaluation system for all teachers.

WSJ: Judge Blocks Cuomo Cuts for Schools