This state plan is New Jersey's response to the charge of the Stewart B. McKinney Homeless Assistance Act of 1987 (the McKinney Act) to assure educational access for homeless children and youth. The introductory section discusses the following issues: (1) the changing face of homelessness; (2) homeless children and youth; (3) the McKinney Act; and (4) the establishment of the State Office of Education for Homeless Children and Youth. Section 2 describes two separate needs assessment studies conducted by the Department of Human Services and the Department of Education respectively, and their conclusions. Section 3, discussing the State's role in homeless education, finds 9 significant obstacles faced by homeless students, proposes 12 objectives to respond to these obstacles, and lists detailed activities, timelines, and staff responsible for each objective. Section 4, concerning the plan of operation, describes the following components: (1) management plan; (2) methods used to provide services; and (3) evaluation procedures. Section 5 records recommendations presented at public hearings. A selected bibliography of references is appended. The report concludes with the following appendices: (1) subtitle B of the McKinney Act; (2) proposed revision to state residency requirements; (3) the Commissioner's memo to chief school administrators; (4) a copy of a survey instrument; and (5) a list of respondents by county. (AF)