Any conclusions that community education concepts are "alive and well" were not supported in a study of the impact of state education policies on rural school districts with total enrollments of 350 students or less in the Great Plains Region (Kansas, Nebraska, Missouri, Colorado, Montana, North Dakota, and South Dakota). Survey instruments were mailed to 742 district chief school officers and 595 (80.4%) were returned. Respondents were randomly placed in five groups and responded to separate survey instruments. Eighteen to 21 policy options were listed in each of five areas: curriculum materials and development, pupil personnel services, resource generation and allocation, goal development and organizational structure, and personnel training and certification. In each of the five categories the impact of state educational policy options was perceived as negative. State policymakers were perceived as unable or unwilling to accept small rural schools as having individuality--an attitude which is counterproductive to the concepts of community education. Dealing with rural issues would require policymakers to initiate reforms to close the gap between current practices and local community expectations. The "one best system" concept is outmoded in state policy frameworks and new models should be developed to capitalize on strengths of each rural community and to provide for congruence of missions and outcomes. (BRR)