This report is an effort to assess what has been accomplished in successfully diversifying and desegregating historically segregated and unequal higher educational institutions across Kentucky, and how this was done. The report discusses the changing legal setting for these initiatives, analyzes the educational achievements and challenges, and suggests how the progress can be continued and expanded in changing circumstances. Much has been accomplished, but educational inequality continues in some important ways. There are still massive gaps in the educational pipeline that threaten realization of the state's goals. Changing circumstances, both in law and in the state's demography, require new approaches that deal both with major vestiges of the historic discrimination against African Americans as well as equity for Latinos, whose numbers are now growing fast. Legal Principles for a Diversity Plan are appended. (Contains 13 tables, 2 figures and 234 footnotes.)