This report provides a case study of cooperation between the New Jersey Department of Education and the Model Cities Program to improve State education planning and to restructure grant administration machinery. To assist the project, the Department provided onsite technical assistance to the model cities. According to the report, the Department fulfilled its technical assistance mission by assigning its personnel full time to local communities. Concurrent with its field activities, the Model Cities Project provided back-up support to the Department and engaged in planning to secure additional resources for Model Cities. The project also assisted the Department in planning for the administration of federal funds. (JF)