Third, fifth and seventh grade students will face two sets of tests rather than four after the city and state compromised on testing students over the school year. Under the agreement, students will take two state tests in mathematics and reading, according to published reports.

Additionally, the state will pay the tests' publishers more money to ensure that the city gets test results by June in order to make decisions about promotion, the reports said. The first test will be administered in January.

Child poverty continues to rise

Poverty is up across the country and as many as one third of all children in the city live in poverty, according to a study by the Children's Defense Fund. The study found that almost 700,000 children live in poverty in New York City with 168,000 in the Bronx.

Across the nation, 13 million children live in poverty, the study said, an increase of almost 13 percent since 2000. The study also indicated that a single parent with two children needs an income of about $30,000 to adequately raise the children, almost twice the federal government's "poverty line" level.

Children who are poor are more likely to die in infancy, have a low birthweight, lack health care, housing, and adequate food, and receive lower scores in math and reading, the report said.

Teachers deserve raise, panel says

New York City teachers would get 11 percent pay raises but sacrifice certain rights if the city and the teachers union adhere to an arbitration panel's decision. The arbitration is non-binding.

The panel recommended an 11.4 percent pay raise for teachers, but they would have to teach an additional three days a year, teach 10 minutes more a day and give up certain free periods, according to reports.