Governor Andrew Cuomo said that if the city and the teachers union cannot reach a deal on a teacher evaluation system by September 1, he will propose a law granting the state's education department to create one, NY1 reported.
Cuomo cited the danger of losing federal funding as well as state funding.
New York City schools already lost $250 million when a deal failed to be reached two weeks ago. Most other cities in the state were able to meet that deadline.
City schools now stand to lose an additional $450 million in aid and grants.
"It's good to know that should the talks fail again, people who actually understand education will be part of the decision making process," Michael Mulgrew of the teachers' union said in a statement.
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