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New York State Education Commissioner David Steiner says the system needs an overhaul, including completely new standardized tests and double the number of charter schools.

But with hundreds of millions of dollars in budget cuts going into effect on Tuesday, accomplishing the feat won't be easy.

"No one here, I think I speak for the Chancellor and Regents, thinks this is anything but difficult, difficult news for our districts," Steiner said.

Revamping the system may be the state's best hope for bridging the budget gap with the Obama Administration offering as much as $700 million in federal funds through its so-called "Race to the Top" competition.

Washington says it's rewarding states that innovate and increasing the number of charter schools and evaluating teachers by using data like test scores might give New York a leg up. But applications for the competition are due in just over a month, so the legislature will have to act fast on the board's recommendations.

"I think there is a common sense of urgency that I am hearing in all these conversations with the legislative leaders, with the governor, with the chancellor and my senior colleagues on the Board of Regency," Steiner said. "There may be disagreement about a detail here, a proposal there but I get no sense that anyone is satisfied with where we are."

New data last week reconfirmed that the tests given to third through eighth graders in New York are much easier to pass than federal exams, suggesting that the state's standards are too low and the tests are too easy.

Commissioner Steiner, who took charge of the education department in October, says the Regents will officially vote this week to develop new tests.

"We will ensure that the state’s tests become less predictable and more comprehensive," Steiner said.

The Regents will also recommend raising the cap on the number of charter schools from the current 200 to as many as 400, and revamping the entire curriculum to make sure students are really prepared for college. They'll also vote on new ways to train teachers and quicker ways to evaluate teachers accused of wrongdoing.

If these topics all sound familiar, it's because they've been hotly debated for years. But with so much at stake, the Board of Regents says now is the time to act.