This report summarizes the key laws, policies, and regulations and current or persistent issues associated with Tennessee public education. Two major questions directed the inquiry: What were the principal educational policy developments in Tennessee in the 1980s and 1990s? and What major educational challenges and issues currently exist in Tennessee? Data were collected from a literature review, content analysis of documents, and interviews with state-education-agency personnel and state leaders. Two major waves of reform are discussed--the Better Schools Program, implemented during the 1980s, and 21st Century Schools, to be implemented around the year 2000. The following issues addressed by recent state initiatives are discussed: (1) national educational goals and content standards; (2) early childhood education; (3) connections between schools, work, and lifelong learning; (4) high school restructuring; (5) broad-based coalitions of educators, parents, business, and community leaders addressing school needs; (6) accountability standards and school-performance goals; (7) leadership development; (8) decentralized decision-making and strategic planning of educational improvements; (9) technological resources to support instruction, school management, and policy research; (10) preparation and certification of educational professionals; (11) school safety; and (12) equity funding. (Contains 93 references.) (LMI)