He asks how many 9th graders there are, and how many 12th graders.

In New York City, Duncan said there were 103,000 9th graders, but only 53,000 students in 12th grade. The audience gasped.

"My question to you is, where are they all going?" Duncan said.

But Sharpton's congregation wasn't nearly so pleased. Some of the few hundred people who crammed into his House of Justice booed the mayor heartily for several seconds before he spoke and heckled him from the audience during his speech.

At first, Bloomberg tried a little humor. He turned to David Dinkins, who was sitting on the dais and who earlier had joked that he had trouble getting past the crowds at the front door to get into the building. Bloomberg teased that he had no trouble getting in the back door because "[Sharpton] and I agree on more than you and he agree on."

When that fell flat, Bloomberg tried out a little ethnic humor

"It is also amazing here in New York that [32BJ President Mike] Fishman and Bloomberg would be addressing the National Action Network. It is like [Jeff] Zucker and [Jerry] Speyer and Bloomberg lighting the Christmas Tree this year at Rockefeller Center. Only in New York would you see something like that."

Afterwards, Bloomberg delivered a wonky, policy-filled address that touted the administration's efforts to combat gun violence, his plans to reform the juvenile justice system and their work to remake the city's school system.

It was this last data point that brought out another round of Bronx cheers, especially after the mayor touted the city's improved graduation rates and test scores.

"I know everybody complains, everybody says that the test is easier, this that and the other thing. Make no mistake about it: President Obama and his secretary Arne Duncan think that New York City is the national model for what you do with the school system," the mayor said as he was interrupted by catcalls and shouts of "No they don't."

"We are not going to walk away from that. With the help of Al and the National Action Network I know that you will help us succeed."

Duncan informed the press of the meeting during a visit at a local school with Mayor Mike Bloomberg to tout a new pilot program to modernize the GED test and test prep.

Although Black's appointment has created a firestorm of controversy in New York, since she lacks any experience in the public sector or with education, Duncan seemed to endorse her selection.

"I am really excited about what she can do here," Duncan said. "I'm a huge fan of Joel Klein. I think he's done an amazing job and her challenge and the opportunity here is to take public education to the next level. I am going to do whatever I can to be supportive of her in doing that. There are a lot of easier things she could have chosen to do and for her to have the courage to step up and do this work, I think tells you something about her character."

Black has been touring the city's schools and meeting with teachers, parents and educators. Members of the press have been grumbling however that the city's Department of Education has not been releasing her schedule.

Like Black, education is Duncan's second career--in Duncan's case, as a professional basketball player overseas. However, Duncan worked in education for a decade before being named CEO of Chicago's public schools, including two years as a deputy chief of staff to his predecessor.

Duncan said that he did not think Black's lack of experience would hinder her.

"Anyone coming into this job has a huge learning curve," he said. "She like anyone else has a learning curve. She's smart, she's committed, she's going to have a great team and this is not just about Cathie, it's about the entire city rallying to make this the best urban school system in the country."

Duncan praised New York's recent expansion of its charter school system, and said the state could be on track to win federal dollars from the competitive education fund known as Race to the Top. The second group of winners from that program will be announced in September 2010.

"Obviously, we are in the middle of a competition so I can't comment on any particular state's application. But I think New York has worked extraordinarily hard," Duncan said.

Look out, past winner Tennessee!

Mr. Duncan's comments stole a bit of the spotlight from the higher education part of the conference, which brought about 80 college and university presidents together to talk about a series of proposals being pushed by Ms. Gillibrand.

"[My] agenda opens the doors of our world class colleges and universities to more of our students, makes college more affordable for all families, and harnesses all of our state's potential in the high-tech sector to spark new industries, attract businesses and create the jobs of the future right here in New York," she said in a press release.

Barnard College President Debora Spar, who attended the summit, called Gillibrand's plan--which includes extending tax cuts on tuition and STEM education--"attractive for those of us who are running colleges."

"I can appreciate that people have ideological differences with some of the plans, but this is the plan that President Obama and Secretary of Education Duncan have put before us. And the question is, do we want to compete? Are we racing to the top? Or are we racing to the middle, and in the middle you're not going to get funded," Paterson said at an event in the Bronx where he signed a new foreclosure prevention law.

Paterson said he called Arne Duncan, the federal education secretary, to talk about whether New York's current laws—which cap the number of charter schools at 200—would make the state ineligible.

"What he said to me is eligibility does not mean you're even in the ambit of those states that are going to receive money," Paterson recounted. "If we in New York are going to be in the running to compete for race to the top federal money, we either need to be in compliance as much as we possibly can with what the federal government wants, or we should withdraw because we're not going to get the money. And any kind of discussion in between these two concepts is just going to confuse the issue."

State Senator Malcolm Smith agrees with Paterson, and has introduced a bill doubling the cap. A spokeswoman for Assembly Speaker Sheldon Silver said he is still "reviewing the recommendations." Teachers' union officials are not completely supportive of such a move.

The event provides Bloomberg a national platform and a friendly audience. Duncan contacted local lawmakers to urge them to support extending mayoral control. And the founder of C.A.P., John Podesta—Bill Clinton's former chief of staff, who also led Obama's transition team—endorsed Bloomberg for re-election last month.

During their protest outside City Hall on Sunday, I asked them about the support mayoral control has received from the top education official for Barack Obama, the popular Democratic president that they all supported for election.

“We’re not going to engage in beating up of our president that we love,” said Hiram Monserrate. “But what we will say is that irrespective of the opinions of those who are not operating here in the state government, that the New York State Senate is very clear and our message to the mayor [is] 'come to the table, enough with the name-calling and threats, let's work out a deal that works for the 1.1 million children of the city of New York.'”

Bill Perkins, who said he “loved Obama,” jumped in.

“Let's be clear,” he said. “What we have right now is not what he may be thinking we have. We have mayoral dictatorship. We do not have a school governance that is Democratic and allows for input. I don’t think anybody in their right mind in a Democracy celebrating the hundredth anniversary of the National Association for the Advancement of Colored People would want to have the kind of system that we have here right now. I don’t think they’ve had the opportunity to look at it. They’ve taken the mayor’s word for it. Actually, I’m 100 percent sure that upon closer review that they would not appreciate the kind of torturous experiences that the families and the people of our communities are going through under this system.”

Perkins went on to say, “I don’t think Barack Obama would want to see a segregated school system as we have in New York City.”