New York City schools will lose funds set aside to hire teachers if they do not fill current vacancies from a pool of teachers who lost their permanent positions. The city has about 1,050 vacancies and 1,500 teachers on payroll without assignments; using teachers already in the system would save an estimated $75 million. "Limiting your hiring freedom goes against what I stand for, but because of the economic reality, we must control costs and protect our schools from deeper budget cuts," schools Chancellor Joel Klein wrote to principals.

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