In 1991, the Washington State Legislature directed the State Board of Education to develop a new priority system for allocating state aid for school construction and modernization projects. This document reflects the concerns of the State Board of Education, identifying the current context and discussing the major issues pertaining to school construction in Washington. The new priority system is explained in detail, which uses a single scale of values and ranks both growth-related projects and condition-related projects within the same system. The system is based on data collected from site visits to 5 pilot districts, a survey of 11 other states' priority systems, and 2 surveys of Washington school superintendents. Major issues to be dealt with include eligibility, the status of previous district decisions, facility planning and programming, the society/facility relationship, and management/governance. Important aspects of the board's vision for the construction program include: equal access to a "good education" for all students; a flexible capital facilities process; cost-effective use of technology; clearly documented and understood construction needs; a predictable funding environment; an equitable tax burden among districts and a balance between state and local control; a reliable revenue source; and an agreed-upon long-range state construction assistance-funding plan that fits with verifiable estimates of long-range construction needs. Six exhibits are included. Appendices contain descriptions of priority factor scoring, the school facilities questionnaire, and a summary of school district responses. (LMI)