This report was based on the responses of more than 1,000 school employees to a survey on the physical environment at their schools. Many of the responses revealed some startling building conditions, from students who have to wear coats and gloves in class to rats and mice entering classrooms through windows and cracks in walls. The report includes photographs of school conditions submitted by members of the American Federation of Teachers. The report notes that an increase in cases of asthma may be linked to poor air quality, student concentration may be affected by temperature extremes, and student and staff absenteeism may be due to an unhealthy "built environment." The report recommends federal action, including: (1) passage of the America's Better Classroom Act, which would provide $24.8 billion in school modernization bonds for renovation of existing buildings and construction of new schools; (2) passage of the 21st Century High Performing School Facilities Act, which would authorize grants to school districts for modernization and construction; (3) creation of a "Learning Environment Index" under NCLB that would require schools and districts to make improvements in the teaching and learning environment. The AFT recommends improvements at the state and local levels, including: (1) stronger standards for school building and systems inspections; (2) clear guidelines for school renovation practices; (3) uniform and comprehensive pest control and maintenance plans; and (4) increased involvement of union members in the planning of new school construction and renovation. This report contains six sections: (1) Introduction (High-quality teaching and a challenging curriculum are not enough); (2) The Problem (Inadequate, unhealthy and unsafe public school building conditions); (3) The Consequences (The effects of poor conditions on learning, health and staff retention); (4) The Elements (What makes a well-designed, well-built, well-maintained school?); (5) Recommendations (Actions at all levels that can improve school buildings); and (6) Conclusion. (Contains 21 endnotes.)