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Although there weren't any significant changes in the overall distribution of grades, this year's report showcased more "A" schools than last year with 139 being awarded the top rating.

A total of 92 schools received a "B" grade -- a drop from last year -- while 79 schools received a grade of "C" or "D."

Only one high school received a failing grade – The Peace and Diversity Academy in the Bronx, which got high marks for a friendly atmosphere. Students said they were not surprised by the overall failing grade, especially when comparing their school to the A school they share a building with.

"Our school is more loose than the other school. Like we don't have to wear uniforms," said student Jason Smith. "There is a certain time that you can still be in that you don't have to get penalized for it. It is not like the other school where you are late by one minute, you get a detention."

"It is a good environment. If we have problems, we go to the teachers and things," said student Shameeka Bromfield. "But academic wise, I don’t feel like I am being challenged.

Grades are based on State Regents test scores, the number of credits students earn each year, and graduation rates.

The DOE raised standards this year making it harder for schools to get higher marks.

Schools Chancellor Joel Klein says he sees impressive gains among poorly performing students, but admits more progress is needed.

"We all know we have a lot of work to do, one of the hardest things is to both say you are making progress, but you have a lot more work to do. And that is clearly the message and I don't want to mince words about it and an area that we especially have a lot more work to do is with english language learners," Klein said.

Schools that receive a "D" or "F" are in jeopardy of being closed or restructured.