As part of an effort to identify states' roles and responsibilities in Indian education, major unresolved problems in Indian education were identified by survey and on-site visits in Alaska, Minnesota, Montana, Oklahoma, and South Dakota. Educators, government officials, parents, students, and tribal officials were surveyed regarding educational programs and practices, educational finance, legislative and policy issues, and interpersonal and interagency relationships. Most of the 149 respondents agreed that: 1) program evaluations and studies of achievement differences between Indian and non-Indian students are needed; 2) Indian education is not a major state priority; 3) federal, but not state, policies are often a barrier to meeting Indian educational needs; 4) social and health problems affect Indian students' academic achievement; and 5) there is little interagency cooperation to address educational needs of Indian students. Although educators and government officials believed that schools met the needs of Indian children, that Indian-school relations were good, and that current funding mechanisms were adequate, parents and tribal officials disagreed. Among the most significant unresolved issues noted were: parental involvement with Indian education; basic skills for Indians; cross-cultural staff and teacher training; and the need for Indian teachers and school administrators. The results are reasonably applicable to other states. (SB)