In New York City and state, charter schools are slowly gaining momentum through performance that speaks for itself, and with quick action by authorizers and charter advocates when schools fail. But as the New York charter experience should demonstrate to districts and states nationwide, meeting the urgent need for systemwide improvement is far beyond the capacity of most existing charter or even new small school supply efforts. The challenge for the next generation of charter school policy and implementation in every state will be to thoughtfully expand the number of new schools without sacrificing strong accountability, and to help school districts develop internal capacities to support autonomous schools side-by-side with more centrally managed schools. In the meantime, the growing number of New York City charter schools and their students will continue to inspire with their courage, tenacity, and all-out effort. New York City community and policy leaders should be congratulated for their leadership and skill in creating the opportunity for charter schools to shine. This report looks at the history, status quo, challenges, and future of charter initiatives in the city, as well as for the rest of the state. (Contains 4 tables, 5 charts, and 33 endnotes.) [This report is a product of the 21st Century Schools Project.]