To determine how school districts are handling the problems of asbestos in their schools, the General Accounting Office (GAO) conducted interviews and asked standarized questions of officials at 6 Environmental Protection Agency (EPA) regional offices, 12 state offices, and 36 school districts in 12 states. This report presents information on the framework in which decisions on asbestos are being made, the appropriateness of the abatement actions, and the quality of the abatement work. Researchers found asbestos in over one-half of the schools in districts visited. In these 36 districts, 28 used consultants and 12 reported difficulty in identifying qualified consultants, and over $51 million had been spent on asbestos abatement. Suggestions cited the most frequently by EPA, state, and school district officials and by at least one official at each level of government included: (1) require state certification of contractors and consultants, (2) establish an independent governmental unit to monitor and inspect abatement actions, (3) provide better technical guidance and assistance, (4) establish a definitive standard specifying the level of exposure that should be abated, (5) provide more information about asbestos hazards and remedies, and (6) increase federal funding for abating asbestos. (MLF)