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New York is encouraging school districts to sign a plan this week that could help the state win hundreds of millions of dollars in federal education funding. WNYC's Beth Fertig reports.

REPORTER: The "Race to the Top" program has states competing for funds, based on their proposed education reforms. New York State officials say the state plans to redesign its testing system; build a database for tracking students all the way through college; and convert some failing schools into charter schools. New York State could win up to 700 million dollars. The application is due later this month, and local districts and unions have been asked to sign onto these principles by January 8th. States whose applications get a lot of support from their districts are thought to have an advantage. But some observers believe New York is handicapped because of a law limiting the number of charter schools. The Governor wants the law changed. For WNYC I'm Beth Fertig.