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State Education Commissioner David Steiner says it's time for the legislature to raise the limit on charter schools. He suggests the number could double, from 200 to 400.

But United Federation of Teachers President Michael Mulgrew says caution is needed, before creating more of the publicly-funded but privately-managed schools.

MULGREW: Because if we're receiving public funding for the schools then the schools have to make sure that we're servicing all of the children of New York City.

REPORTER: Mulgrew claims charters don't take a fair share of non-English-speaking students, and those with disabilities.

The state is competing for federal money from a program called "Race to the Top", which encourages school reforms, including charters. New York is thought to be at a disadvantage because of its cap on the number of charters.

Meanwhile, the Regents are working on other reforms to win federal funds. They include clearer curriculum guides, better teacher training, and guidance to districts on how to turn around or close failing schools.