It is now widely recognized, after the publication of four reports on the subject, that public education in the United States is in a state of crisis. This policy paper contends, however, that much of the debate on these reports has been based on distortions of their contents and challenges the current Administration's position which holds that public education has been harmed by increasing Federal aid and court decisions in the area of equal opportunity. It is emphasized that the goals of equal education and educational excellence are inseparable. Excellence entails developing the talents of all to the fullest, and this is said to be impossible in the face of discrimination. Excellence is also impossible without adequate funding, and in this regard a larger Federal role (rather than a reduced one) is called for. Other areas in which Federal involvement is held to be essential include testing (to ensure validity) and curriculum (to ensure that all public school students, particularly blacks, have the opportunity to develop competencies leading to success in school, the job market, and the community). (CMG)