No guidelines are offered, but the purpose is to identify which levels of the government are responsible for making the policy decisions regarding the public education of children with AIDS. Federal and State powers are examined separately. The role of the State is examined in depth and comparisons are made of different rules that the states have either adopted or could adopt. Arguments are made that support allowing the states to develop their own rules on AIDS policy. Federal treatment of this issue is seen as undesirable due to Congress' inability to respond rapidly to ever changing medical treatment and knowledge. The extent of the recommended role of the Federal government would be to make non-binding recommendations regarding AIDS policy to the states. State decision-making approaches are examined and include the ad hoc, procedural but no substantive rules; substantive and procedural rules; and legislative determination of risk approaches. 68 notes.