This report contains nine chapters: "A New Beginning"; "The Heart of the Matter: Three Kinds of Development"; "Special Knowledge for Educators"; "Participating in Policy Development"; "Commitment to Diversity"; "Human Resources: Making People Matter"; "The Core of Learning: What All Educators Must Know"; "The Professional Development School: Integral to Tomorrow's School of Education"; and "New Commitments and New Kinds of Accountability for the TSE." To correct the problem of uneven quality in the education and screening of educators for U.S. schools, the report proposes an altered mission for schools of education. Knowledge development, professional development, and policy development lie at the heart of the mission. To fulfill this mission, the 250 Holmes Group member institutions are challenged to raise their quality standards and make important changes in curriculum, faculty, location of work, and student body. Among the challenges are the following: the education school's curriculum should focus on the learning needs of the young and development of educators at various stages of their careers; university faculties should include teachers, practitioners, and other individuals who are at home working in public schools; programs that prepare school personnel and teacher educators need to actively recruit, retain, and graduate a more ethnically diverse student body; faculty and students in schools of education should work predominantly in professional development schools rather than on college campuses; education schools should join together to form an interconnecting set of networks at local, state, regional, and national levels to ensure better work and accountability. (IAH)