Discusses the role of the national values of efficiency, choice, and equity in the adoption and implementation of the federal education block grant program and the negative effects on school desegregation. Urges policymakers to consider policy goals, and not just policy instruments, when considering future proposals. (FMW)

Presents impressions of the first two years' impact of the block grant provisions of Chapter 2 of the Education Consolidation and Improvement Act on nine public schools districts and four private schools in Michigan. Briefly discusses Chapter 2's effects on intergovernmental relationships and major state actions and decisions. (PGD)