This report reflects the efforts of the federally mandated National Advisory and Coordinating Council on Bilingual Education (NACCBE) to search for ways by which local school systems can exercise greater choice of teaching methodologies while still meeting their responsibilities of teaching English to all of their non-English speaking students. It contains an account of significant developments in the history of bilingual education, an update on recent research, a plea for common understanding, ten state assessments of bilingual education over the past decade, a synopsis of testimony at eight regional hearings, and recommendations. The Council urges the Federal government to provide greater flexibility to local districts concerning methodologies of second language instruction while still responding promptly to any violation of the constitutional rights of language minority students to quality education. More specifically, it recommends: (1) greater stress on special alternative instructional methods; (2) local level decision making concerning methodology; (3) increased funding for limited English proficiency students; (4) Federally funded research projects on better methods to identify bilingual students with special needs and training for professional staff to work with these students; (5) efforts to reduce the high dropout rate; (6) increased research and evaluation of language learning and language teaching theory; (7) improved teacher training for bilingual, English as a second language, mainstream, and special education teachers; and (8) efforts to prevent inappropriate placement of students in special education programs. Appendixes include the Department of Education budgets for bilingual education for 1985 and 1986; data on language characteristics of the U.S. population by state and age for 1980; data on home speakers of Spanish in the United States for 1980; a copy of the NACCBE Charter, and a paper reporting the personal views of five Council members. (ETS)