This study was commissioned by Alberta Education to examine the development and organization of private schools in Alberta and to consider future directions. It examines the financial issues related to private schools, the effect of private schools on public school systems and on the education of children, and implications for public school jurisdictions and government. Possible alternatives are identified, and recommendations are made for future action. Part 1 is a discussion of the context, issues, and objectives of the study. Part 2 describes the elaborate four-phase process of the study: design, research requirements, data analysis, and final report. Part 3, the bulk of the report, is a discussion of conclusions and recommendations arranged according to 10 key policy issues: (1) rationale for private schools' continuation; (2) rationale and extent of provincial control over them; (3) nature of controls; (4) public funding for operating expenses; (6) categorization of private schools; (7) need for statutory controls; (8) need for administrative controls; (9) effect on public school system of private schools; and (10) role of Alberta Education in home schooling. Three appendixes list study participants and acknowledgements, the 10 resource papers incorporated in the study, and a glossary of terms. (TE)