Results of this study will be used to assess the possibilities and limitations of staff development as an instrument of state and local policy for improving educational quality in the public schools in California. Four basic questions were addressed: (1) What is the total California taxpayer investment in staff development and what forms do the investments take? (2) How are staff development activities administered, organized, delivered and evaluated; and by what approaches do these activities achieve their goals? (3) How do teachers and administrators judge the quality and effectiveness of the staff development activities in which they participate? and (4) What policy and program options might the state pursue in order to improve the classroom benefit associated with staff development? Four main data sources form the basis of this report: (1) descriptions of local patterns of staff development; (2) teacher and administrator surveys; (3) survey of districts and counties; and (4) state-level program descriptions and evaluations. This report provides an overview of the main conclusions and the policy issues and alternatives related to the established state obligations for continuing education for teachers. (JD)