THIS PLAN CONTAINS LEGISLATIVE PROPOSALS AND GENERAL RECOMMENDATIONS FOR THE DECENTRALIZATION OF THE NEW YORK CITY PUBLIC SCHOOLS AND FOR INCREASED PARENT AND COMMUNITY PARTICIPATION. IN PART IT RESPONDS TO AN EARLIER PLAN PROPOSED BY THE MAYOR'S PANEL ON DECENTRALIZATION. THE PRESENT PROPOSAL SUGGESTS THAT THE ADMINISTRATIVE RESTRUCTURING OF THE SCHOOLS WHICH THE MAYOR'S PANEL HAS RECOMMENDED WOULD ONLY CREATE "HARMFUL DISORGANIZATION." A MORE EFFECTIVE PLAN WOULD REQUIRE PERMANENT INCREASED STATE AID AND INSTITUTE COORDINATED SCHOOL, HEALTH, HOUSING, EMPLOYMENT, AND RECREATION OPPORTUNITIES. IT IS FELT THAT ALTHOUGH LOCAL CONTROL MIGHT SUCCESSFULLY BE EXERCISED OVER THE INSTRUCTIONAL PROGRAM, IT SHOULD NOT BE ALLOWED TO HINDER INTEGRATION, THE MERIT SYSTEM, THE NEW COMPREHENSIVE HIGH SCHOOL PROGRAM, SCHOOL EVALUATION, AND OTHER CITYWIDE EDUCATIONAL POLICIES. THUS THE LOCAL SCHOOL BOARDS MUST REMAIN ACCOUNTABLE TO THE CENTRAL BOARD. THE LEGISLATIVE PROPOSALS OUTLINED IN THIS PLAN BRIEFLY DESCRIBE THE AUTHORITY OF THE LOCAL SCHOOL BOARDS, THE TENURE OF EMPLOYEES, THE PROCEDURES FOR THE SELECTION OF THE BOARD OF EDUCATION, AND THE REMOVAL OF RESTRICTIVE PROVISIONS IN THE PRESENT LAW. FURTHER RECOMMENDATIONS NOT REQUIRING LEGISLATION INCLUDE THE SUGGESTION THAT NO ADDITIONAL LOCAL BOARDS OR DISTRICTS BE CREATED, THAT THERE BE CENTRALIZED EXAMINATION AND APPOINTMENT OF SCHOOL PERSONNEL, AND THAT THE BOARD OF EXAMINERS BE REORGANIZED AND RETAINED. IT IS FURTHER RECOMMENDED THAT THE LOCAL BOARDS HAVE FLEXIBILITY IN THE USE OF ALLOCATED FUNDS AND RESOURCES. UNDER THIS PLAN COST AND EVALUATION DATA GATHERED BY THE CENTRAL BOARD WOULD BE MADE AVAILABLE TO LOCAL BOARDS FOR DETERMINATION OF INSTRUCTIONAL PRIORITIES. (LB)