As part of a foundation for a multilevel analysis of career ladder reform among educational employees in Utah, this paper focuses on policymaking from the state perspective. Career ladder policy decisions are determined primarily through state legislative action, which are executed by the state board of education. This paper describes policy decisions, examines processes through which decisions emerge, and discusses implications of the state's capacity to influence the development of career ladder programs. Data were acquired from legislative and agency documents, interest group files, and from 7 informal and 42 indepth interviews with legislators, legislative staff, executive staff, agency officials, and interest group representatives. In Utah, career ladder decisionmaking is characterized by politicalization. Competing goals elicit conflict; for example, whether to break the lockstep salary schedule or to protect it. The impetus for career ladder enactment comes largely from the governor and legislators. Interest groups primarily exercise constraints on rules. Substantial delegated local capacities mitigate the impact of centralized mandates. Utah's policy commitment to the analysis of local district variance expresses confidence in districts' capacity to devise effective programs and enables the state to exert power in the evolution of career ladder reform. Four pages of references are appended. (CJH)