This policy brief focuses on design issues surrounding decentralization policies, drawing from the following three reports: "Working Models of Choice in Public Education," by Richard F. Elmore; "Diversity Amidst Standardization: State Differential Treatment of Districts," by Susan H. Fuhrman; and "School District Restructuring in Santa Fe, New Mexico," by Martin Carnoy and Jean McDonnell. The first part describes design issues in school choice programs--understanding the relationship between demand- and supply-side choice, providing benefits to all clients, and integrating choice programs with existing school systems. The next section describes design issues in programs (within districts or schools) which must vary regulatory treatment in order to be effective. This subject is discussed with reference to: (1) eligibility for waivers; (2) willingness of schools to participate; and (3) interaction with existing state policies. Design issues in district decentralization are examined last, with a focus on strategies used by the Santa Fe school system to address teachers' rewards, leadership, and parent support. A conclusion is that programs for school choice, deregulation, and decentralization primarily involve changing the incentives offered to participants. An annotated bibliography of four sources and information on the Center for Policy Research in Education (CPRE) and its publications are included. (3 references) (LMI)