This document presents findings of a General Accounting Office study that examined the extent to which America's schools have the physical capacity to support learning into the 21st century. Specifically, it looked at facilities requirements, environmental conditions, educational technologies, and facility infrastructure. Data were collected through a survey of a nationally representative sample of about 10,000 schools and site visits to 10 selected school districts. The survey response rate was 78 percent. Findings indicate that although most schools met many key facilities requirements and environmental conditions for education reform and improvement, most were unprepared in critical areas for the 21st century. Most schools did not fully use modern technology and lacked access to the information superhighway. Forty percent of the schools reported that their facilities could not meet the functional requirements of laboratory science or large-group instruction. Over half reported unsatisfactory flexibility of instructional space necessary to implement many effective teaching strategies. Overall, schools in central cities and schools with minority populations above 50 percent were more likely to fall short of adequate technology elements and have a greater number of unsatisfactory environmental conditions than other schools. Older schools need infrastructure renovation to support technology, which includes fundamental changes to building structure, wiring and electrical capacity, air conditioning and ventilation, and security. Three figures, three tables, and photographs of school conditions are included. Appendices contain a list of project advisors; survey data; data on the schools' technology elements, facilities requirements, and environmental needs; and a technical appendix. (LMI)