This paper addresses issues unique to theological schools, which face challenges associated with changes in the composition of student bodies, faculties, and boards; increased pressures on administrators; and reduced funding. The discussion is organized around five major issues: (1) distinguishing features of theological schools, which historically have had two purposes--to educate religious leaders and to pursue theological research; (2) changes in student demographics and religious "enculturation" challenge schools' educational programs and raise questions about the relationship between seminaries and church bodies; (3) the faculty and the vocation of theological schools--small faculties, limited budgets, and fragmentation of the theological curriculum affect both faculty and students, and the discussion centers on such questions as how theological schools can maintain both enrollments and standards of admission, how much responsibility they have for providing remedial courses, and what is the school's role in religious formation; (4) how decreases in denominational contributions and a lack of consensus on theological accountability impact on governance and management of theological schools; and (5) finances and the costs of deferred maintenance of physical property, noting some of the differences between Protestant denominational institutions and Roman Catholic schools. (Contains 18 references.) (CH)