The rapid changes occurring in U.S. society and the rest of the world require dramatic improvements in educating U.S. citizenry. New York's public school system also needs reorganizing according to a new compact for learning. This report explains this compact and its fundamental principles: (1) recognizing that all children can learn; (2) focusing on results; (3) aiming for mastery; (4) providing the means; (5) providing authority with accountability; and (6) rewarding success and remedying failure. The compact's goals, strategic objectives, and specific roles of the state, the student, the parent, the teacher, the school support team, the principal, the school, the school district, the community, the superintendent of schools, the board of education, the region, higher and continuing education, libraries and other cultural institutions; and business, industry, and labor are outlined in separate sections. The compact's relationship to equity concerns, accountability, strategic planning, and Regents' goals and Bill of Rights for Children are also delineated. (MLH)