This monograph presents results of a 6-month study of the federal government and the Clinton Administration's proposal for a decade-long process of re-inventing the federal government's operations. Each of four major principles are presented in a chapter organized around specific steps towards its implementation. These principles are: cutting red tape, putting customers first, empowering employees to get results, and cutting back to basics. Appendices present recommendations organized by federal agency, a summary of expected savings, and major recommendations affecting governmental systems. The 12 recommendations for the Department of Education are: (1) redesign Chapter 1 of the Elementary and Secondary Education Act; (2) reduce the number of programs the department administers; (3) consolidate the Eisenhower Math and Science Education Program with Chapter 2; (4) consolidate National Security Education Act programs; (5) streamline and improve the Department's grants process; (6) provide incentives for the Department's debt collection service; (7) simplify and strengthen institutional eligibility and certification for participation in federal student aid programs; (8) create a single point of contact for program and grant information; (9) improve employee development opportunities in the Department; (10) eliminate the grantback statutory provision of the General Education Provisions Act; (11) build a professional, mission-driven structure for research; and (12) develop a strategy for technical assistance and information dissemination. (Contains 251 endnotes.) (JB)