These hearings transcripts present testimony regarding parents' and schools' roles in teaching values to school age children, the federal funds involved in values education, and the remedies available to parents who may object to or be offended by some of the topics taught and the vehicles used to teach these topics. Witnesses included: (1) representatives from Delaware, California, Wisconsin, Michigan, and Ohio; (2) William Bennett, former Secretary of Education; and (3) several parents, teachers, and school administrators. Testimony presented noted that parental involvement is the most important factor in helping children succeed in school. Parents want their children to be taught the basics, but trust in schools is broken when parents are shut out of the process. Schools need to reflect the values of the community. School choice improves schools and reinvolves parents. How people in school treat one another is more important than values programs. Children are moral agents who recognize right from wrong as defined by moral influences, whether from parents, teachers, friends, or television. Additional testimony conveyed parents' disagreement with the content of information conveyed in school programs for sex education and AIDS education, parents' concerns about treatment of homosexual students, and possible misuse of government funds for AIDS education. (KDFB)