The Advisory Panel on Financing Elementary and Secondary Education appointed by President Reagan in 1982 developed recommendations regarding both the Federal role in education and the practical means for carrying out that role. To encourage accountability and educational quality, the panel urged giving locally selected authorities primary responsibility for educational administration and funding. The Federal role proposed by the panel would be restricted to funding the programs required by Federal law and would limit both the enforcement of intrusive Federal regulations and the mandating of national educational objectives. The panel also encouraged support of private education as a competivtive alternative to public schooling. The panel's short-term practical recommendations included consolidating Federal categorical grant programs into less-regulated block grants, establishing educational voucher programs, offering tuition tax credits, and involving the private sector. Longer-term recommendations were to dismantle the U.S. Department of Education, turn Federal revenues back to the states originating them, deregulate public schools, encourage school-based management, and structurally reform public education. A minority of the panel disagreed with the majority's recommendations regarding education vouchers and tuition tax credits, submitting a minority report. Materials supporting the final report are provided along with a bibliography. (PGD)