Presented is a 2-part report on educating the gifted in California schools. Included in Part One on program planning are brief sections on goals, proposed legislation, the role of the Gifted and Talented Education Management Team, a 3-phase proposal for implementing work plans (in such areas as management, preservice and inservice training, research and evaluation), and experimental programs for gifted disadvantaged students. Considered in Part Two are portions of a Blue Ribbon Committee report that deal with general philosophy; a definition of gifted individuals (in terms of intellectual, leadership, and creative abilities); major program goals; basic needs (including multiple learning options); program principles in the areas of counseling, curriculum design, and staff development; and program recommendations regarding aspects such as evaluation, individualized instruction, parental involvement, funding, and staffing ratios. Provided is a chart relating program principles and recommendations; and appended are lists of Blue Ribbon Committee, planning team, and Department of Education staff members. (LH)