The 1986-1987 annual report of the Southern Regional Education Board (SREB) is presented. In addition to statements from the SREB chairman and president, the report contains a program sampler in which progress in the following areas is addressed: improving the quality of teachers, establishing standards and assessments to improve quality in higher education, strengthening student preparation and measuring achievement in high school, remedial education in college, providing states with comparable higher education data, and sharing regional resources in higher education. The statement by SREB Chairman Georgia Governor Joe Frank Harris provides an overview of efforts to improve the quality of education in SREB states. The report from SREB President Winfred L. Godwin provides examples of how SREB states have worked together on major issues during the 1950s, 1960s, 1970s, and 1980s. The importance of state action in promoting educational reform and educational quality is addressed. Members of the board from each state are listed along with the date when their term expires. Additional contents include: a listing of members of advisory groups, a list of SREB professional staff, an auditing statement, and a list of SREB publications. (SW)