Poor educational performance and the changing nature of work and workers have prompted calls for a major restructuring of American schools. The following broad categories of restructuring options are discussed and supporting research is reviewed: (1) decentralizing authority over schooling through school-based management, more professional teaching conditions, and greater parental choice; (2) holding schools more accountable; (3) altering the process and content of classroom instruction; and (4) strengthening the links between schools and the larger community, particularly with business and various social service networks. The following major problems with restructuring are discussed: (1) the connection between the problems of poor educational performance and a changing economy, and the solutions embodied in different restructuring proposals are not always clear or well-articulated; (2) the causes of the problems with the educational system have yet to be definitively identified; (3) very little attention has been given to the costs of various restructuring options or to the new investments in capacity-building that would be needed; and (4) changes in authority over key educational decisions raise normative questions about the governance of public education and which values should prevail. A list of 102 references is appended. (FMW)