A study analyzed the operations of state education agencies (SEAs) as they promote and develop the concept of community education (CE) in their respective states and assessed the impact of federal support on the capabilities of SEAs to develop their capacities in the community education area. Data were collected from 1001 respondents from the fifty states and the District of Columbia, which completed one of four evaluation instruments: an SEA activity questionnaire describing the resources and activities of state CE offices; interviews administered to SEA staff at thirty-eight sites; a training/technical assistance mail questionnaire assessing the content and usefulness of such assistance and the quantity and quality of interaction between SEAs and local community educators; and a local data-monitoring procedure form completed by directors of the thirty-seven federally funded local CE programs. (This policy report of the study concentrates on an overview of the study, the community education concept, the historical background of community education, and the evaluation design. A technical report of the study containing more extensive discussions of the study background, design, methodology, and findings is also available through ERIC--see note.) MN)