Education must address two critical needs of New York State's economic growth: the need to enhance the quality of the labor force and the need to promote technological innovation. The economy of New York has been shifting since the 1970's away from manufacturing and toward services and jobs involving advanced technology. Schools need to upgrade instruction in foundation skills, occupational skills, and professional preparation. The social functions of education must also keep pace with changes in society. Current programs promoting economic growth in New York include the Centers for Advanced Technology, the Industrial Innovation Extension Service, the Regional Centers for Economic Development, various employment and occupational training programs, Tuition Assistance for Dislocated Workers, the Hiring Incentive Program for the Disabled, and training for community college employees. The schools' effectiveness will also be enhanced by several state programs supporting teacher training, educational quality, computer education, literacy, employment preparation, cultural education, dropout prevention, community renewal, scientific and technological education, partnerships with business, scholarships, and other forms of school support. The Task Force on Education and Economic Development of the Regents of the University of the State of New York will continue to develop and support programs encouraging education for economic development. (PGD)