The percentage of Indian children in New Mexico public schools is increasing, but dropout rates remain high and a low level of academic achievement by Indian children persists. An effort should be made to increase Johnson-O'Malley funds for Indian students, and more detailed accounting procedures should be required to ensure that these funds are used exclusively for Indian children. Schools of Education should include courses in linguistics to prepare teachers to teach English as a second language. Indian education must be based on a philosophy that respects and recognizes cultural differences. (JH)