MAJOR FINDINGS OF A SUMMER SEMINAR HELD AT THE UNIVERSITY OF CHICAGO IN 1966 DEFINE CURRENT ISSUES RELATED TO STATE DEPARTMENTS OF EDUCATION (SDE) AND LEAD TO 23 RECOMMENDATIONS FOR STRENGTHENING THESE DEPARTMENTS SO THAT THEY MAY BE EFFECTIVE PARTNERS IN THE GOVERNMENT OF EDUCATION. SDE'S ARE EVALUATED WITH RESPECT TO FIVE MAJOR ACTIVITIES--OPERATIONAL, REGULATORY, SERVICE, DEVELOPMENTAL (IMPROVEMENT OF SERVICES), AND PUBLIC SUPPORT AND COOPERATION. FAILURE OF SDE'S TO ACHIEVE OPTIMUM RESULTS IS DUE TO INADEQUATE FINANCIAL SUPPORT, LACK OF AGREEMENT ON METHOD, NEED FOR PERSONNEL, AND ORGANIZATIONAL INERTIA. SPECIAL ASPECTS OF THE STUDY INCLUDE--(1) HISTORICAL DEVELOPMENTS AND CURRENT STATUS OF SDE'S, (2) SELECTED CHARACTERISTICS OF SDE'S (3) BACKGROUND AND CAREER PATTERNS OF STATE DEPARTMENT PERSONNEL, (4) STATE POWER AND LOCAL DECISIONMAKING IN EDUCATION, (5) THE IMPACT OF TITLE V ON SDE'S, AND (6) THE EMERGING ROLE OF SDE'S. DATA SUPPORTING THE STUDY WERE OBTAINED FROM INTERVIEWS OF 116 PROFESSIONAL PERSONNEL, RESPONSES OF 39 CHIEF STATE SCHOOL OFFICERS TO A QUESTIONNAIRE ON USE OF TITLE V FUNDS, AND AN ANALYSIS OF THREE STATE DEPARTMENTS OF EDUCATION, SMALL, MEDIUM, AND LARGE. THIS DOCUMENT IS AVAILABLE FROM THE MIDWEST ADMINISTRATION CENTER, THE UNIVERSITY OF CHICAGO, 5835 SOUTH KIMBARK AVENUE, CHICAGO, ILLINOIS 60637. (JK)