The result of a program audit requested by the Office of Education (OE), this report addresses all major elements affecting the operation of the Title I Migrant Education Program and includes recommendations of the Migrant Branch Chief and of key OE advisors for the program. Following a discussion of background legislation, of recommendations resulting from research and program assessment, and of program regulations, the report presents 15 critical policy and management issues designed to define the way OE will administer the migrant program. Issues #1-#9 are funding issues to be considered in conjunction with material in Appendices C and D. Issue #1 is also designed to encourage States to assess the educational needs of migrant children and ways to meet those needs. Issues #10-#13 deal with program priorities in the areas of parental involvement, interstate coordination, use of the proper mix of subgrantees, and preschool education. Issue #14 deals with monitoring and sanctions. Issue #15 deals with the organizational placement of the Migrant Education Program. Several key problems concerning internal management and recommendations for their resolution are discussed. Appendices contain summaries of seven migrant education studies, a history of regulations development, a description of the existing system for processing grant applications, a scenario for improving application processing, the method now used to monitor grant awards and proposals for improvement, and a proposed organization for the Migrant Education Program. (CM)