Reported are the findings of hearings on the operation of three demonstration projects, IS 201, Two-Bridges, and Ocean Hill-Brownsville, in decentralized school districts in New York City. The hearings were concerned with the impact of the projects on the schools and community in these districts and with any evidence of improved education as a result of decentralization. In addition to discussing the projects in each district, the report describes the roles of the parents, teachers, supervisors, and central Board participating in the projects, and discusses the increased community participation and problems of staffing and fair political participation which accompany decentralization. Also, it stresses the need for safeguards against possible abuses on the part of local governing boards in a decentralized school system. (EF)