NEW YORK, NY July 24, 2007 —The city's 1,400 principals are getting new booklets explaining the state requirements for arts education. These reminders come as principals switch to a new budget system, which no longer earmarks about $65 for arts education for each child but instead gives them more flexibility to use their funding.

REPORTER: Critics worry that the arts will suffer, noting that many schools already don't comply with the state's requirements. But Schools Chancellor Joel Klein says that won't happen because principals will be rated partly on how well they use the arts in their schools.

REPORTER: School surveys, filled out by parents, teachers and students will count for about 10% of a school's grade when the city begins an A-through-F grading system for its schools this fall.