In a very significant settlement that occurred recently, New York State Union of Teachers and state leaders have agreed to a new statewide teacher evaluation system that limits the weight of students’ standardized test scores. It is designed to help teachers improve and also reinforce collective bargaining to shape evaluations based on local needs. They are hoping that this system acts as a national model. The Governor of New York, Andrew Cuomo has called it a “historic agreement.” 60 % of the new evaluation will be based on the teacher’s performance, which is majorly based on classroom observations both announced and unannounced. Other tools to evaluate could be student portfolios or student and parent feedback surveys. The remaining 40% is based on student achievement. Only half of that will be based on state tests, while the remaining half will be based on student’s assessments selected from a list five options selected through collective bargaining. Teachers can either be rated ineffective, developing effective, or highly effective. A teacher who receives ineffective must receive support and training to improve. More than one ineffective rating can lead to dismissal of that teacher. The governor has linked the Annual Professional Performance Rating to any increase in school funding for the 2012-2013 school year. For districts to be eligible, they must have an approved APPR by January 17, 2013.