When the new government of the Australian state of Victoria was elected in 1992, it began the most radical change to an education system in the history of the country, introducing the Schools of the Future initiative. The underlying rationale, which has its roots in 20 years of experience in Victoria, is that quality outcomes of schooling can only be assured when decision making takes place at the local level. The Schools of the Future program has been implemented in stages, with schools formulating a key feature of the program, a charter at different times. Through the school charter, school communities have the opportunity to determine the future character and goals of the school. School councils determine the educational policies of the school within the framework of the school charter, which is approved by the state Board of Studies. A new funding structure has been established for the Schools of the Future, with a formula-based model of a base element and an equity element based on student characteristics. Financing has been set aside to improve the technological capacity of the Schools of the Future. With all these changes, the self-management of the schools depends on the focus of each school on the needs of its community. A core-plus model of education, with a state-mandated core curriculum and community-determined pluses, might be the way to ensure responsiveness to the needs of the particular community. Schools could become the focus for community development for the whole of the community as well as the educational programs of children. (Contains 18 references.) (SLD)