The Chicago experience in school governance restructuring is examined in this newsletter. The introduction distinguishes between school-based management and shared decision-making and provides an overview of Chicago's restructured school governance. Next, findings of a study that examined school governance in 12 diverse Chicago elementary schools are presented. Results suggest a need for a shift in perspective on the nature of democratic school politics. A third article presents observations on the implementation of reform in two Chicago public elementary schools that serve economically disadvantaged neighborhoods. The contrasts between the schools were significant and showed that changing the governance structure created opportunities for local initiatives. However, the successful use of those opportunities depended on social resources, local leadership, and technical expertise that many schools and neighborhoods lack. The final article is an interview with Peter Martinez, the director of the Chicago Educational Initiative, on the role of foundation support in innercity school reform. He offers an optimistic perspective on the future of restructured governance in Chicago schools. A list of resources is included. (LMI)