This report (based on testimony presented at a 1984 public hearing and a review of the literature on educational reform) addresses the role of equity in attaining effective public education, especially in Kentucky, by describing educational problems of that State. The basic premise is that excellence cannot be achieved without equity, and that recent "at risk" reports have not fully acknowledged this fact. Children who do not "fit" into Kentucky's schools are identified as black, poor, handicapped, female, and/or dropout. They are said to suffer from two basic inequities: (1) lack of access, which excludes them and their parents from certain programs and decision-making processes; and (2) lack of preparation for post-school employment and inability to find jobs commensurate with their skills. Seven equity problems specific to Kentucky are outlined and recommendations are made for their solution: (1) School reform must include the provision of necessary social services. (2) Education should not depend on the wealth of the students' community. (3) Discipline practices in Kentucky are, in general, too severe. (4) Students, parents and citizens must be involved in school decision-making. (5) Educational services are not being improved in proportion to the rising standards. (6) Basic skills are being defined too narrowly: the purpose of education is to prepare children for full participation in a democratic society. Finally, (7) the current trend in vocational education will not result in better job opportunities, but will in many cases deny students a sound academic education. (KH)