This annual report defines three broad areas in which the Southern Education Foundation supports research. The first looks to what kinds of teachers will be needed in the future; the second asks how our best thinking can be translated into effective action; and the third asks how seamless education can be. Programs subsumed under education and public policy include: an initiative on educational opportunity and postsecondary desegregation, a consortium on teacher supply and quality in the South, a North Carolina consortium to increase the supply of minority teachers, a Louisiana consortium on minority teacher supply and quality, a pathways to teaching program, and a New Orleans school leadership collaborative. Programs of traditional interest include a black college library improvement program and a black college program to increase retention and graduation rates. Other programs include a comparative human relations initiative, which examines intergroup relations in Brazil, South Africa, and the United States, pass-through grants for a focused reporting project, and a mathematics education project titled "QUASAR, Quantitative Understanding Amplifying Student Achievement and Reasoning." Appended are a list of program funders and a brief financial report. (CH)