On November 9, 1989, Governor William P. Clements, Jr., established a Task Force on Public Education and charged it to develop a blueprint for restructuring public education in Texas. The state public education system is under taxpayer pressure to improve performance and under court order to correct funding inequities. This report describes the task force's recommendations for legislative action to move Texas toward a fiscally neutral, quality education for all students. The task force defined and recommended a set of funding principles to be implemented as state policy, along with a specific funding plan to meet these objectives. The task force also recommended fundamental changes in governance and accountability structures within the system, methods of determining the costs of delivering educational services, and the process measuring and rewarding educational performance. Following a brief history of educational reform in Texas, 28 general and 9 funding system recommendations are presented. The final section addresses funding plan design considerations and introduces the four tables involving task force parameters, forecasts, and results and wealth neutrality measures. An appendix contains a copy of the governor's executive order. (MLH)