This report on the Legislative Council begins by providing an indepth look at the policies of the Oregon educational environment and the changes beginning in the 1990s with legislation and policy changes that resulted in the ability to compare Oregon schools in ways that did not exist before. These commonalities created a framework in which the true relationship between costs and performance could be determined for the first time. The groundwork was laid for the development of the "The Oregon Quality Education Model." To define the components and costs of a quality education, the council determined that the model must achieve three broad goals: (1) examine and confirm support for high academic standards for all students; (2) determine the components for a complete, quality education designed to meet Oregon's high academic standards; and (3) develop a model to determine the costs of those components. Appendices provide reports and recommendations of various working groups. (Contains 15 pages of references.) (DFR)