This booklet is one of a series of reports addressing the most critical issues confronting state boards of education throughout the United States. Each report attempts to present a concise, informative review and analysis of the best and most current information available on one of these critical topics. This booklet focuses on ways to increase the policy-making effectiveness of state boards of education. Section 1 contains a brief overview and summary of the booklet; section 2 presents a review and analysis of the policy-making functions of state boards by David L. Colton; section 3 presents a number of action alternatives recommended by the staff of the National Association of State Boards of Education; and section 4 contains footnotes and a brief annotated bibliography prepared by the author of section 2. (Author/JG)