Educational policy alone will not create successful educational improvement. This summary presents key findings from 5 years of research on policy and finance, conducted by the Consortium for Policy Research in Education (CPRE). Key findings include: (1) U.S. schools have demonstrated important, positive changes in practice, attitude, and student achievement; (2) most states and many districts have adopted standards-based reforms; (3) education policy has not yet provided coherent, effective guidance on how to improve instruction; (4) reforms are not always realistic; (5) reformers often overemphasize structural changes and pay inadequate attention to instructional quality; (6) policymakers overlook the role that students could play in raising their achievement; and (7) funding is a key element of education reform and reform policy. Sections provide greater detail about the role and limits of policy, standards-based reform, the impact of policy on the classroom, intergovernmental relations and school policy, ways to build new capacity for school reform, factors that facilitate structural change, major trends in school finance, and ways to increase education productivity. A list of CPRE publications and consortium management centers is included. (LMI)