The best response to this period of retrenchment and lack of support for education is more aggressive political activity at the state and local levels. The key to success is building coalitions among educational interest groups and potential allies in other services. Although the federal government greatly expanded its support of education in the last decade, it is likely that federal support will not continue to grow. Recently there has been a shift in the balance of power toward the state level with the most dramatic state initiative being in state finance reform. Many believe the state will continue to grow in its control of education. The impact of interest groups on the state level has previously been substantial, but competition among these groups could jeopardize support for all. Local governance of education historically has moved from decentralization to centralization. Local school governing agencies are more closed to public influence than state or federal agencies. Collective bargaining will produce dramatic changes in the governance of American schools. What is now needed in school governance is improved representation through enhanced legislative governance and decision-making at individual school sites. An urgent need is to rethink the balance between state and local control. (Author/JM)