Prompted by the accelerating growth in the use of education service agencies (ESAs) to improve state systems of education, this discussion of major policy issues and a proposed research agenda is addressed to policy planners at the state or local levels and to policy and research communities. The purpose of the paper is to raise and clarify issues rather than to settle them. The paper is divided according to six features of ESA operations: (1) primary mission, programs, and services; (2) establishment; (3) governance; (4) financing; (5) staffing; and (6) physical facilities. A total of 25 major policy issues and 41 research and development proposals are presented. The document does not discuss whether or not ESAs should be supported nor does it concern itself with implementation procedures. (Author/WD)