This report presents findings and recommendations of the Little Hoover Commission regarding California's efforts to provide schools that are economically built, adequate, safe, and well maintained. Findings and recommendations are presented in the following areas: school facility building and maintenance; leadership needs in managing construction projects; state oversight unification; life cycle investing; needs determination; investment adequacy; and specific findings regarding the Los Angeles Unified School District. Findings reveal that many of the problems that stifled past attempts to raise the quality of schools and education still persist. The central challenge remains how to bring experienced, high-caliber individuals to these local projects, and position these people in the appropriate organizational structures so that the projects are imbued with quality and innovation. The reports suggests that a mechanism is needed to help California's school districts learn from other states and to create a process for continuously incorporating innovation in building designs. Further, the state must continue finding ways to accelerate needs assessment, raise funds, allocate resources equitably, and efficiently implement needed regulations. (GR)