U.S. Education Secretary Arne Duncan today started the states' competition for a share of $4.35 billion in "Race to Top" grants.

The money is meant to spur innovations and improvements in public education.
The states have been talking about the money for months, ever since the money was included in the federal stimulus bill, Lynn Bonner reports. The Gates Foundation has agreed to help North Carolina with its application.

In a webinar with district superintendents this week, state Superintendent June Atkinson said North Carolina will put together a strong application.

But the question whether the state's cap on charter schools would be an impediment lingers.

For weeks, Duncan has said that states that limit charter schools would be at a disadvantage, and he repeated that twice Friday.

States that "cap the number of charter schools or don't hold them accountable will be at a competitive disadvantage," Duncan said.

At the superintendents' webinar Thursday, Lee County superintendent Jeff Moss had asked Atkinson if North Carolina's cap of 100 schools would hurt.

Atkinson said the charter school cap is "not a deal breaker."

More after the jump.

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