The teachers union apparently walked away from discussions over a new teacher evaluation system, hours before a deadline needed to secure $450 million in state funding and grants for the city's school system. “This is deeply regrettable," Mayor Bloomberg said in a statement. "The UFT…threw the negotiations off track with demands that effectively undercut the intent of the law, which is to create an evaluation system that ensures we have the best possible teacher in every classroom in our schools." Of course UFT President Michael Mulgrew saw things differently: "Mayor Bloomberg blew the deal up in the early hours today, and despite the involvement of state officials we could not put it back together."

According to the Times, the new evaluations stem from legislation passed by Governor Paterson to receive federal funding from the Race to the Top program. More rigorous evaluations are necessary to receive the funding, and the deadline to put those systems in place is at midnight.

It's unclear if the NRA UFT is bluffing, or if the money is as good as gone. “Today is the final deadline for the handful of school districts, including New York City, that have failed to get their teacher evaluation systems in place,” Governor Cuomo said. “Please hear me—there will be no extensions or exceptions.”