In order to show how planning might be implemented and structured at the state education agency level, basic principles and guidelines regarding the establishment and operation of educational planning units are identified and related to the development of planning capabilities in state education agencies of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin. Following discussions of the need for comprehensive planning and the responsibility of the state education agency for educational planning, a functional description is presented of the planning process and its structure in state education agencies. Capabilities necessary for effective planning are identified, and illustrative state planning activities are presented in the appendix. Books concerning educational planning are included in a bibliography. (FS)