Problems that beset urban education in general are analyzed, and solutions are discussed and evaluated by a policy working group of the National Association of State Universities and Land Grant Colleges. The most acute problem in American education involves the unmet needs of disadvantaged students, who are heavily concentrated in urban school systems. Almost every one of our nation's largest city school systems has a predominantly minority enrollment and a high percentage of students whose first language is not English. Accepting that the nation must invest in at-risk students, and that the Federal Government should lead in this process, the following five areas identify specific needs that must be addressed: (1) assisting urban students through social services; (2) addressing teacher shortages and needs; (3) developing and disseminating information about effective teaching and instructional technology; (4) developing appropriate organizational arrangements; and (5) solving financial problems with increased aid. Specific recommendations are made for national action, which include teacher pension programs, incentives for teacher improvement, programs for minority students, and encouragement of innovation in instruction and organization. Urban universities have an important role to play in forming partnerships with urban educators to promote educational quality. (SLD)