The more diversified the economy, the greater Texas's possibilities for security and stability. The state cannot diversify the job and business structure unless there is an educational system prepared to develop Texas's human resources to their fullest. The state's population will be over 40 percent minority by the end of the century, and student minority populations will exceed 50 percent; thus, a good base exists for future middle class minority development. Because equal opportunities must start at a very early age, a statewide Head Start-type program would be a wise and cost-effective investment. All through the Texas educational system, local leadership has been frustrated by the continuing attempt to run things from the top of the political structure, and local school principals have been unable to develop new curricula that are geared to the specific needs of their students. The higher education system in Texas greatly emphasizes the "flagship" institution. Higher education programs do not reflect the current diversity in the state's population, particularly in terms of transfers and percentages of students who graduate. Special attention must be paid to a state program that will create winners, not just pick them. (10 references) (KM)