During the early 1990s, the Hartford, Connecticut, public school system experienced serious financial problems and a downward trend in the key indicators of educational success. In 1994 the Hartford, Connecticut, board of education granted Education Alternatives, Incorporated (EAI), a 5-year contract to manage the school district. This paper presents findings of an evaluation of the Hartford/EAI experience. Data were obtained through a review of the contract and other documents, a site visit, and interviews. In January 1996, about one and one-half years into implementation, the school board terminated its contract with EAI. EAI assumed responsibility for managing the operations of the 32 schools in the district while the board retained ultimate policymaking authority. The contract did not specify that EAI implement its Tesseract instructional approach. Rather, EAI was to recommend and implement enhancements to the educational program, and spend $20 million on educational technology and $1.6 million on building improvements. Conflict arose when EAI's proposed budget for 1995-96 included cuts in teaching positions. The district reported that the contract was terminated because EAI concluded that it would not operate under the contract as written. EAI stated that it ceased services to Hartford because the district failed to pay for services rendered in accordance with the contract. EAI is credited with improving access to educational technology and making school repairs (concentrated in six schools), and helping the school district secure a zero increase in teachers' salaries for one year. Data on student performance was not yet available. (LMI)