This document presents findings of a study to be used as a basis for determining the condition of the nation's school facilities. This report presents information on the amount of funding the nation's schools report is needed to improve inadequate educational facilities, and on the overall physical condition and prevalence of schools that need major repairs. Data were obtained from: (1) a survey of school officials in a nationally representative random sample of about 10,000 schools in over 5,000 school districts, which elicited a 78 percent school response rate; and (2) site visits at 41 schools in 10 school districts. The data project that the nation's schools need about $112 billion to repair or upgrade facilities. Of this, $11 billion (10 percent) is needed over the next 3 years to comply with federal mandates that require schools to make all programs accessible to all students and to remove or correct hazardous substances. About one-third of the schools, which were distributed nationwide, reported the need for extensive repair or replacement of one or more buildings. Almost 60 percent of the schools reported at least one major building feature in disrepair, requiring extensive repair or replacement. Most of these schools had multiple problems. In addition, about half reported at least one unsatisfactory environmental condition in their schools. Some district officials attributed the declining physical condition of schools to decisions by school districts to defer vital maintenance and repair expenditures due to lack of funds. Appendices contain 10 district profiles, photographs of the worst conditions, a list of project advisors, a copy of the questionnaire, data points for the report findings, acknowledgements, and GAO contacts. (LMI)