This institute report contains the 13 major addresses grouped under (1) the political setting, (2) the fiscal setting, (3) the legal setting, and (4) operational problems. Three speakers first address themselves to the problems inherent in educational governance operating within a complex political framework, in light of the fact that governance in itself is essentially a political activity. Two speakers then consider fiscal problems related to State education system governance. The discussions center on the kinds of governance constraints stemming from both local and governmental fiscal constraints. The next three addresses speak to a number of issues that reflect the way in which laws -- and the administrative structure ordained by the law -- control educational governance. Although the political, fiscal, and legal settings together constitute the basic matrix in which governance of State education systems is embedded, a large number of other forces impinge on the actual governance operation. Some of the resultant operational problems are discussed in the five papers that conclude the presentation. (Author/DN)