Following a 1980 strike by San Jose, California, public school teachers, the San Jose school board was embarrassed by a $6.2 million budget surplus into granting a teacher contract beyond its fiscal capacity. The school board's subsequent decision to declare bankruptcy established a controversial precedent for similar actions elsewhere. (JBM)

Reports how the prolonged 1978 Levittown (New York) teachers strike initially depleted resources and created problems but proved to be the impetus for development of an effective school system. Reviews sources of conflict that led to the strike, reactions of community and teachers, and reforms focused on teacher empowerment. (FMW)