This paper summarizes a study of professional development in Indiana and six other states and its connection to the provision of teacher time. The study examined state provisions for professional development in Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Ohio, and Washington. The states used different approaches to providing teacher time for professional development in their definitions of the school year, linkage to state reform goals, governance level, and funding. Experts agree that effective professional development must go beyond skills training to organizational development. An effective professional-development program is school-based and collaborative; uses coaching and other followup procedures; is embedded in the daily lives of teachers; and focuses on student learning and is evaluated in part on that basis. Such a program also requires the following conditions: advocacy-oriented leadership, resource and policy support, norms of collegiality and experimentation, and adequate time. Ten state-policy guidelines for making time available for professional development are outlined. Options for establishing a state system of teacher time for professional development are also described. It is recommended that Indiana educational policy: (1) provide state support in the form of person-days per full-time-equivalent (FTE) teacher; (2) make at least four person-days available per teacher; (3) allocate teacher time directly to the school; (4) require schools to develop a written 5-year strategic plan; (5) submit annual fiscal and performance reports; (6) provide state startup assistance to schools and a state infrastructure of policies and resources; and (7) provide state and local funding to individual schools. (LMI)