This document is one of a series of papers by leading scholars presented at the State University of New York's annual program of educational policy seminars. The paper reviews recent judicial attempts to interpret the U.S. Constitution's first amendment's establishment clause in areas that have had a significant impact on educational policy makers. Generalizations are presented to guide the formulation of policy concerning church-state issues in education; to point out unresolved problems; to suggest apparent doctrinal inconsistencies; and to note practical and theoretical concerns for educational policy maikers. The paper is followed by the comments of three discussants, Bernard E. Harvith, Martin Edelman, and Daniel C. Levy, on the issues raised in the paper. (DB)