This report provides information on the actions of the states in educational reform. A state policy overview is presented in seven areas: (1) school leadership; (2) teaching; (3) parent involvement and choice; (4) readiness; (5) technology; (6) school facilities; and (7) college quality. Reports are given of financing school improvement, highlights of state education policies, and state-by-state education data. Suggestions are made on steps that states can take for the improvement of public education in the areas of: (1) modification of curriculum and instruction; (2) decentralization of authority and decision making; (3) development of new staff roles; and (4) linking of rewards and incentives to student performance through efficient accountability systems. Maps and tables provide detailed information on each state. (JD)