Gov. Kathy Hochul has proposed changes to caps on charter schools that could pave the way for about 100 more in the five boroughs. However, this could cost the city a lot of money.

“I think it does present a challenge for us absolutely,” New York City Schools Chancellor David Banks said during a budget hearing in Albany Wednesday.

The New York City Department of Education pays charter schools per each student they enroll. The city is also on the hook to either provide charters space in a public school building or pay their rent.

“That does have an effect on our overarching budget and what we can do,” Banks said.

A memo from the Mayor's Office of Management and Budget, first reported by Politico, estimates that adding the new charter schools would cost the city about $1.3 billion. Banks acknowledged the price tag, but otherwise tried to stay out of the fray.

“It’ll have financial implications on us and our budget and our schools — that’s for sure,” Banks said. “Will it have an impact? Of course it will.”

Banks says he is more focused on running the traditional public schools he oversees, which educate the vast majority of public school students.

“This has been a kind of a pitched issue for many, many years and in some ways I’m quite tired of it, to be honest with you. I really spend most of my waking moments very focused on how I can help these kids to read,” Banks said.

Betty Rosa, New York's state education commissioner, questioned the need for lifting the cap in the first place.

“I’m not even sure what the thinking is, given the student reduction in New York City,” Rosa said. “We still have like 12 charters that haven’t even opened."

The city has lost many public school students in the last several years, with data showing many are leaving the city or state entirely, rather than migrating to charters or private schools.