This policy brief examines new roles for state education and higher education agencies in building collaborative education systems. It outlines the perspectives held by schools and higher education on the following issues: (1) defining high standards and designing outcomes-based assessment; (2) building capacity to support high standards; and (3) coordinating K-12 and higher education systems to support student achievement. Promising efforts taken by the following states in the North Central Regional Educational Laboratory (NCREL) region are described--Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, and Wisconsin. Individual sections outline the states' strategies for defining standards and assessment and for institutional improvement. Other issues to be addressed include: equitable higher education admission standards; teaching and learning strategies that complement high school strategies; sponsorship of teacher-faculty exchange programs; postsecondary options programs; responsibility for new technologies; roles and responsibilities for work experience and experiential learning programs; preparation of minority freshmen; and parent involvement. A list of state contacts is provided. (LMI)