THE TRADITIONAL CONCEPT OF THE INTERMEDIATE ADMINISTRATIVE SCHOOL UNIT IS THAT OF THE COUNTY SUPERINTENDENT OF SCHOOLS OPERATING AS AN ARM OF THE STATE, WITH REGULATORY POWERS AND RECORD KEEPING DUTIES AS WELL AS EDUCATIONAL LEADERSHIP FUNCTIONS. THE NEW TYPE OF UNIT THAT IS EVOLVING IS LARGELY SERVICE ORIENTED (I.E., SPECIAL EDUCATION, DATA PROCESSING, CURRICULUM SPECIALISTS, ETC.), AND USUALLY IT COVERS A MULTI-COUNTY AREA. WHEN DETERMINING THE ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES OF THESE UNITS, IT MUST BE REMEMBERED THAT ALL LEVELS OF A 3-ECHELON STATE SCHOOL SYSTEM MAINTAIN A DELICATE BALANCE OF RELATIONSHIPS, AND EACH LEVEL REFLECTS CHANGES MADE IN ANY OTHER LEVEL. THE LEGISLATURE DELEGATES SPECIFIC FUNCTIONS TO THE VARIOUS LEVELS OF STATE ORGANIZATIONAL STRUCTURE. IT SHOULD BE REMEMBERED THAT LOCAL CONTROL OF EDUCATION IS IN EFFECT ONLY AS THE STATE LEGISLATURE CHOOSES TO MAKE IT, AND THAT NO IN-LINE STAFF HIERARCHY EXISTS BETWEEN THE DIFFERENT LEVELS. THIS PAPER WAS PRESENTED AT THE CONFERENCE ON SCHOOL DISTRICT REORGANIZATION AND THE INTERMEDIATE SERVICE UNIT (HARRISBURG, PA., APRIL 21-22, 1966). (DK)