California schools have lost again in the second round of the Obama Administration's "Race to the Top" in education. After the state lost in the first round, Education Secretary Arne Duncan personally encouraged Governor Schwarzenegger to try again, and success would have meant $700 million in federal funds with $150 million for LA Unified and $18 million for Long Beach. We talk with the Superintendent of Public Instruction, the LAUSD and the California Federation of Teachers about why the State came up short for a second time.