This report presents the text of hearings on urban education and focuses on what makes urban schools effective instruments of learning and why urban school students consistently achieve above national norms on standardized reading, writing, and mathematics tests. Specifically considered are (1) the impact of the federal government's budget cuts on education; (2) legislative proposals; (3) classroom instructional conditions; and (4) programs necessary to improve education. Among those who testified were educators (educational administrators, professors and teachers) and community leaders. The report contains verbatim and written statements, letters, and supplemental materials. (WAM)