The question of how a state can attract, prepare, license, and retain an adequate number of competent teachers is addressed in this publication. An introductory statement considers the goals of public school education as well as present and future issues and concerns of educators. Recommendations made in six chapters focus on the role of the state education agency in educational improvement. In the first chapter, global and national perspectives on education are briefly assessed prior to an indepth discussion of issues facing the Northeast Region, which comprises six New England states and New York state. The second chapter discusses research findings on the characteristics of the competent teacher. The following four chapters consider, from the point of view of a state education agency's reponsibilities, the problems of attracting, preparing, licensing, and retaining qualified teachers. In the concluding statement, future activities of the Northeast Regional Exchange which may be of assistance to the state departments of education they serve are discussed. A bibliography is included. (JD)