This report enumerates principles which should be considered important to any legislation designed to provide educational services to disadvantaged children. It is recommended that the primary objective of Title I programs be to raise the educationally disadvantaged child's level of achievement in the area of the basic skills. It is recommended that the Federal Government exercise a direct responsibility for special groups of children where local or state obligation is not acknowledged or existent. It is recommended that the funding formula be revised to simplify economic criteria and collection of statistical data on poverty children; provide uniform criteria and appropiate allocation procedures for local districts whether organized on a state, county, or district basis, and; provide adequate allocations to urban areas with high concentrations of low income families. It is recommended that Title I legislation require an individualized needs assessment. Recommendations are also made in the following areas: (1) parent involvement, (2) citizen participation, (3) evaluations and technical assistance, (4) audits and sanctions for noncompliance and (5) state administrative costs. A summary of past council recommendations (1966-1976) is provided. (Author/AM)