Examining the challenges and responsibilities facing Canadian provincial and local boards of education, this paper focuses on economic, demographic, ideological, jurisdictional, and administrative problems. Both provincial and local school boards currently face increasing financial pressure as inflation soars and taxpayers demand fiscal restraint. Declining enrollment causes both financial pressure on the district and unemployment among teachers. Other problems facing Canadian educators result from the particular racial and linguistic mixture found in Canada and from the variety of socioeconomic, pedagogical, and political values held throughout the country. A trend now is for local boards to lose power to the provinces, especially regarding finances, collective negotiations, and curriculum. Also rapidly emerging is the question of whether Canadian educational administrators should adopt an active or reactive style. What is necessary is a new emphasis on educational planning and a common definition of the goals that local and provincial systems must pursue. (Author/JM)