NEW YORK, NY March 26, 2009 —Schools chancellor Joel Klein says Albany may shortchange local schools, and not deliver the full amount of federal stimulus funds the city deserves. At a Council hearing today, he says the city may have to lay off 4,000 people, including 2,000 teachers.

KLEIN: If we get the $500 million we anticipate, no teacher reduction. We still anticipate some staff. If we had another 150 or so, I think we could protect all the staff.

Klein says he thinks the state will only give the city's Department of Education $360 million in stimulus funding.