Governor Andrew Cuomo will be pushing for big school reforms in his State of the State address on Wednesday.
Sources say Cuomo will announce a commission to look at education from a "student perspective," and the panel is expected to include outside experts.
Cuomo's announcement comes after the city and the teachers union failed to reach an agreement over the weekend on a new teacher evaluation system, which cost the city $60 million in school improvement grants.
The state pulled the funding after city education officials walked away from talks with the union last week.
The two sides were split on a number of issues, including an appeals process for teachers.
In his address, Cuomo is also expected to push for a constitutional amendment to legalize gambling in the state, with the aim of possibly putting a full casino at Aqueduct Race Track.
He will also call for new commission to look at the state's tax code.