This document describes outcomes of the Arizona School Restructuring Pilot Project, implemented in Arizona in 1990. The project provided 11 elementary and 4 high schools, selected in a competitive grant process, with the opportunity to pilot their restructuring plans over a 4-year period (1990/91-1993/94). Data were obtained from a survey of key participants: 481 out of 577 possible teachers; 20 out of 21 possible principals and assistant principals; 14 out of 15 possible superintendents; and 20 out of 75 possible governing board members. Teachers and principals reported that the pilot grant funds had allowed their schools to act more as "risk-takers." Concerns about the site-based decision-making councils centered on lack of "real power," lack of training, and the need for teacher compensation or released time. The top state-, local-, and school-level barriers to implementation are identified, some of which include lack of state funding, excessive paperwork, cumbersome teacher dismissal policies, lack of time, lack of financial incentives for teachers, and lack of adequate discretionary funds. The four stakeholder groups also identified the following proposed solutions as useful: getting more discretionary funding to school sites; requiring board members to attend training sessions; offering state support for training activities; creating school-based social-service centers; and developing charter schools. Finally, the report offers 11 policy observations and recommendations. Appendices contain the pilot project list of schools and funding summary for 1990-94, a matrix and descriptions of restructuring schools' emphasis; and school-by-school teacher survey responses. Sixteen tables are included. (LMI)