The Education Improvement Act (EIA) was passed in Tennessee in 1992. It established the Basic Education Program (BEP) as the funding formula used to provide adequate, equitable, and sustainable school funding. The 1997 master plan is consistent with the national Goals 2000 legislation and addresses each of the eight national goals. The plan focuses on nine key areas, sets goals for those areas, identifies strategies to achieve the goals, identifies new costs to implement the strategies, and notes measures of progress for each goal. In support of the plan, the board has developed an action plan, outlining action needed to be undertaken by the board and the Tennessee General Assembly. The nine key areas include the following: early childhood education, primary and middle grades education, high school education, technology, professional development and teacher education, accountability and assessment, school leadership and school-based decision making, school safety, and funding. The plan also addresses goals and strategies in Tennessee's School-to-Career initiative. It sets the state board's priorities and defines an environment in which local school systems and the state can work for improvement. One table and one figure are included. (LMI)