The Alaska Governor's Council reviewed audited reports submitted by local school districts and other reports supplied by the state Department of Education and held discussions with vocational education administrators across the state to determine what happened to vocational education during the 1980s and to make recommendations for the future. The study found the following: (1) fewer secondary students have enrolled in vocational education programs since 1987; (2) expenditures for vocational education programs have declined for the last 4 years; (3) vocational expenditures have decreased as a percentage of the total amount expended for education; and (4) school districts have not adhered to the "added cost" tenets under the public school foundation program, leaving vocational education underexpended. Policy recommendations were as follows: (1) Alaska should adopt a policy that all high school graduates be prepared for immediate employment and/or postsecondary education; (2) high school students should have a year (grade 13) to complete a vocational program after high school; (3) academic and vocational skills should be integrated in the state's high school curriculum; (4) technology education programs should be expanded to grades 7 and 8; (5) categorical expenditures for vocational education should be made mandatory; and (6) the state should provide grants to school districts to provide programs for at-risk youth. (Estimated costs for implementing each of these policy initiatives are provided. An appendix lists critical skills, values, attitudes, and competencies and 11 resources.) (KC)