The conduct of public education in New York State is a collaborative enterprise involving the Governor and Legislature, the Regents and the Commissioner of Education, and local boards of education. Although a decentralized system has given limited ability to the State Education Department, Legislature, and Governor to direct the use of funds or to know the specific purposes for which the funds are being spent, the Regents continue to support local autonomy. An analysis of trends in education from 1977 to 1983 reveals the following: (1) an emphasis on standards had increased; (2) standards had sagged; (3) America's competitiveness was questioned; and (4) in New York State, educational decline was exacerbated by a fiscal crisis in New York City (NYC). The following Regents/Department initiatives are discussed: (1) testing for competency standards; (2) reallocating Department resources; (3) developing programs for handicapped children; (4) establishing teaching as a profession; (5) directing attention to NYC; (6) linking schools with employment; (7) strengthening bilingual education; (8) directing vocational funds to cities; and (9) monitoring NYC schools. The implementation of the Regents Action Plan since 1984 is discussed. Problems and challenges are reviewed. Trends in monitoring are analyzed. Data are exhibited in 10 figures. Appendices provide discussions of the Fleischmann Commission and the Rubin Commission, both of which covered aspects of educational finance. (BJV)