Restructuring of Kentucky's public schools is required if poor and minority children are to be included in school reform. The responsibility for creating schools that serve all children falls to both the state and local school districts. A state level initiative must be combined with local district effort. This report provides recommendations for correcting the problems faced by poor and minority students that were identified and discussed in three previous studies. Major recommendations include the following: (1) schools must improve the connection between the home and school environments; (2) schools must adopt a philosophy that all children can learn, that schools can serve all children, and that public schools are responsible for educating all children; (3) state government should require local schools to collect and report information to determine the quality of education provided poor and minority children; (4) tracking and ability grouping must be eliminated; (5) authoritarian school discipline, such as corporal punishment and suspension, must be eliminated; and (6) it is the state's right and responsibility to require accountability of local school districts to ensure that public funds are used to provide quality education. A bibliography is included. The appendices include the following: (1) a list of Resources for Alternatives to Tracking and Rigid Ability Grouping; (2) a list of Resources for Disciplinary Alternatives; and (3) a copy of Kentucky's Annual Performance Report for Local School Districts. (FMW)