To reflect the changing technological and social demands of the society in which it exists, education must develop and alter its goals. Critical to this process is educational research in the areas of program evaluation, environmental influences and resource availability. Federal investment in National Institute of Education (NIE) activities and other research programs can serve to make education more cost-effective. Education is at the center of economic recovery. NIE is capable of conducting long-term research beyond the resources of individual states, and is a valuable source of information on effective educational practice. Given the Block Grants Reform, the chances of reduced federal support for research is high. Without this funding Connecticuts' commitment to educational research is jeopardized. In this event, Connecticut will only be able to commit itself to priority research programs involving: disadvantaged students; minorities; the handicapped; English as a Second Language; and the evaluation of the instructional effectiveness of schools. Information sharing between policy makers in local, state, and federal government may serve to stress important areas of educational research, and aid the development of a more effective system of data collection, retrieval and dissemination. (AEF)