This special serial issue is based on the proceedings of an invitational conference on "Next Steps in Inner-City Education" held in Racine (Wisconsin) in October 1995. The three articles in this publication attempt to offer effective and practical recommendations for educational practitioners and policy makers who seek to transform the country's educational institutions. All three articles stress that the problems of education and learning in urban schools are urgent, and that there is a substantial knowledge base that can be used to improve the U.S. capacity for education in urban communities. The first article, "Support Systems for Children, Youth, Families, and Schools in Inner-City Situations" by Sharon L. Kagan, emphasizes that structural, organizational, and pedagogical reforms are needed to achieve the sweeping changes needed for improved urban education. "Why What Works Doesn't in Teacher Education" by Mark A. Smylie and Joseph Kahne notes that research can inform and support the work of teachers in many diverse ways. It may be more difficult to apply research to inner-city schools, but the effort must be made. The third article, "Using Performance Incentives To Improve the Outcomes of Disadvantaged Students" by Eric A. Hanushek advocates performance incentives to bring about educational improvement in the cities. The Federal government and businesses must participate in efforts for improvement. Properly designed performance incentives may encourage the ingenuity needed to develop effective programs for advantaged and disadvantaged students. (SLD)