This is an oft-cited phenomenon, but it should be noted that this policy started to be dismantled 4 years ago [1].
[1] http://www.nytimes.com/2010/04/16/nyregion/16rubber.html
[1] http://www.nytimes.com/2010/04/16/nyregion/16rubber.html
Sure, if by started to be dismantled you mean "was completely unchanged other than they stopped assigning the thumb-twiddling teachers to big rooms/facilities (too visible a target to critics) in favor of assigning them to smaller spaces - spare cubes, broom closets, locker rooms, conference rooms - more widely distributed around the city and hence harder to count."
http://www.nydailynews.com/new-york/education/city-schools-r...
I don't wish to make the argument that this makes the spending or this practice ideal, but rather than in scale of the NYC DOE it does not appear to be as large of a leakage as the press might like to make it seem.
[1] http://schools.nyc.gov/Aboutus/Funding/overview/default.htm
Nonetheless if we are to believe the official figures, they claim the number of rubber-roomers has declined from ~700 to ~200. Which isn't "dismantled" but is certainly "reduced"; it does seem like some progress is being made.