This paper results from the Oregon Action Plan for Excellence, which defines goals and outcomes of the K-12 school experience. This Physical Education Concept Paper, the first of a series, is presented as a challenge to Oregon physical educators to confront constructively and resolve issues with implications for school physical education programs. It identifies and discusses the following issues and trends in physical education: (1) class size; (2) quality of instruction vs athletics and recreation; (3) coeducational physical education; (4) role models; (5) educational technology; (6) equity for all in programs and practices; (7) student evaluation and grading; (8) health-related or skill-related programs; and (9) administrative support and leadership. A list of questions for administrators and teachers to use to rate themselves and their programs concludes the paper. (JD)