This case study describes and interprets the process through which State-level policy decisions are made for the public schools of Texas. The report begins with brief treatments of the socioeconomic environment and political culture within which education takes place. State governmental arrangements for public school policy are described, and four educational issues are reviewed to illustrate the operation of the system. Issues examined include school finance, competency-based certification, desegregation, and regional education service centers. Following these discussions, the essential relationship among and perceptions of the different actors -- legislature, governor, State Commissioner, State Board of Education, Texas Education Agency, special interest groups -- are analyzed. An interpretation of the policymaking process and the roles of those who participate concludes the case study. (Author/DN)