CURRENT RESEARCH INDICATES THAT SCHOOL AND HOME ENVIRONMENTS STRONGLY INFLUENCE AN INDIVIDUAL'S INTELLECTUAL DEVELOPMENT, ALTHOUGH CERTAIN VERY BROAD HEREDITARY LIMITATIONS MAY ALSO AFFECT IT. THE ECONOMICALLY AND EDUCATIONALLY DISADVANTAGED YOUTH EXPERIENCES AN ENVIRONMENT WHICH LACKS STIMULI ESSENTIAL TO POSITIVE INTELLECTUAL GROWTH AND ACHIEVEMENT. FOR EXAMPLE, THE DISADVANTAGED YOUTH IS NOT EXPOSED BY HIS FAMILY TO EDUCATIONAL MATERIALS, TRAVEL EXPERIENCES, OR STANDARD LANGUAGE PATTERNS WHICH WOULD FACILITATE HIS VERBAL ABILITY OR GENERAL ACADEMIC READINESS. IN THE PHYSICALLY AND ACADEMICALLY SUBSTANDARD SCHOOLS WHICH THE DISADVANTAGED YOUTH ATTENDS, DEPRIVED CONDITIONS CAUSE AN ACTUAL DECLINE IN STUDENTS' MEASURED INTELLIGENCE AND ACHIEVEMENT AS THEY GROW OLDER. OTHER STUDIES DOCUMENT THAT WHITE CHILDREN IN DEPRIVED ENVIRONMENTS ALSO MANIFEST AN I.Q. LAG. WITH A POSITIVE CHANGE IN ENVIRONMENT, HOWEVER, THERE IS A SIGNIFICANT INCREASE IN STUDENTS' MEASURED INTELLIGENCE. THUS THE SCHOOLS MUST BE MADE LARGELY RESPONSIBLE FOR PROVIDING AN ENVIRONMENT WHICH WOULD STIMULATE THIS POTENTIAL FOR INTELLECTUAL GROWTH. TEACHER TRAINING PROGRAMS MUST SPECIFICALLY PREPARE TEACHERS TO TEACH DISADVANTAGED STUDENTS. MOREOVER, SCHOOLS NEED DYNAMIC ADMINISTRATORS WHO CAN DEMAND QUALITY EDUCATION IN THEIR SCHOOLS AND WHO WILL ELIMINATE SCHOOL SEGREGATION, WHICH NOT ONLY DEPRIVES THE NEGRO OF AN EQUAL EDUCATION BUT ALSO WARPS THE RACIAL ATTITUDES OF WHITE STUDENTS AND CAUSES THE NEGRO CHILD TO FEEL INFERIOR. THIS PAPER WAS PRESENTED AT THE DETROIT SCHOOL ADMINISTRATORS WORKSHOP, MICHIGAN STATE UNIVERSITY, EAST LANSING, MICHIGAN, AUGUST 16, 1966. (LB)