In the latest battle between Success Academy Charter Schools and Mayor Bill de Blasio, the state has sided with City Hall.
The state education commissioner denied a request from the charter school network to operate its pre-k programs free from city oversight.
Success had refused to sign the universal pre-kindergarten contract that all other providers, including 13 other charter school organizations, had signed, saying it gave the city too much oversight power.
City Hall responded by withholding all public funding for the three Success pre-kindergarten programs, about $720,000.
Success Academy CEO Eva Moskowitz made the fight public over the past few weeks, with press conferences and advertisements blasting the mayor.
In a statement Friday, she said the state made the wrong decision.
"We are appealing Commissioner Elia’s decision — the law is clear: we have a very strong legal case," Moskowitz's statement reads, in part.
With nearly 11,000 students and 34 schools, Success Academy is the city's largest charter school network.