For most of its history, Pennsylvania's public school system has consisted of three levels: the state level, the local school districts, and an intermediate level. In 1970, the intermediate level was reorganized into 29 intermediate units (IUs). In 1997 the state's General Assembly directed the Joint State Government Commission to study how the state's IUs currently assist schools. It was found that IUs offer a large number of programs to school districts and nonpublic schools, covering such areas as personnel training, curriculum development, technology, instructional materials, educational planning, pupil instruction and personnel services, special education, cooperative administration projects, and statewide programs and services. The IUs have no independent taxing authority and receive most funds from state appropriations, grants, sales of services, contributions, student tuition, and investment income. The Commission recommended that the IUs' role in advancing educational equity be enhanced, that the governance of IUs be strengthened, and that state funding to IUs be increased to maximize their contribution to state education, through programs such as cooperative administrative projects, services to children and adults, and instructional material services. (RJM)