This document is a report on the Higher Education Task Force on Improvement and Reform in American Education (HETFIRE). The convictions of HETFIRE, identified in the first chapter, include the beliefs that there must be significant change in the education system so that it becomes more responsive to the needs of individuals and that a critical aspect of this change is the preparation and retraining of educators. The document stresses the necessity of partnership in teacher education and conceptualizes the Personnel Development Center, defined simply as a place where educational personnel preparation and retraining happen. The remainder of the report focuses on six areas in which educational reform might occur, with a chapter devoted to each. The six areas are a) governance, b) management and operation, c) financing, d) staffing, e) curriculum, and f) dissemination of promising practices. The chapter on staffing distinguishes between core staff (a partnership of personnel from colleges, schools, and community service agencies) and adjunct staff. HETFIRE sees the Federal Government playing a crucial role in stimulating and initiating reform processes and then decreasing its involvement. A selected bibliography and camera-ready graphics are included. (JA)