Of the 9 districts in New York we wrote about last week, the deadline has come and gone without an approved plan for six of them, including New York City. Even with the apparent urging of Secretary Duncan, the two sides in the Big Apple could not reach a deal. Now fingers are pointing in both directions and state funds for NYC have been reduced by $450 million ($250 million from the state and another $200 million in grant funds). With the deadline passed and the financial penalty all but a certainty, the parties are still legally obligated to continue to negotiate and reach an agreement that complies with state law.