Book excerpt: The widening mismatch between the skills of the work force and the skill demands of the workplace underlie the need for school restructuring. Within the categories of school-level, school-district, and state-level issues, a discussion about and suggestions for restructuring U.S. education in order to improve its productivity and student acquisition of higher order thinking skills comprise the crux of this document. Educational goals, the structure of knowledge, instructional tasks and activities, instructional group size and composition, and instructional time are reviewed and analyzed as school-level issues. School district role, central office functions, the balance between centralized control and local autonomy, present and alternative governance structures, personnel policies and practices, and collective bargaining are analyzed within the rubric of school district issues. A discussion of state-level issues suggests setting educational goals, stimulating local innovation, and rethinking state accountability systems. In response to the educational challenges that schools face, fundamental changes in the way local districts and states operate will determine the way schools are structured, instruction is provided, and staff roles and responsibilities are defined. (24 references) (JAM)