This study begins with a review of research regarding the effectiveness and role of the school principal in improving student performance, in school climate, and in reform. Section 2 presents data regarding the age, sex, ethnicity, average yearly salary, and turnover of California school principals. The third section provides information on preservice principal training, focusing on credentialing requirements, evaluation of current credentialing programs, and research on the adequacy of preservice training. Section 4 deals with the selection and evaluation of principals, and section 5 examines inservice training programs for principals, including participation by the state department of education and the state board. The final part of this report contains recommendations and long-range approaches to problems examined in the first five sections. This paper was written as a report to the California legislature. (Author/DS)