THE REPORT BEGINS WITH AN EVALUATION OF BOTH PRESENT AND PROPOSED GOVERNMENTAL SYSTEMS AND THEIR IMPACT ON SEPARATION OF POWERS. THE FIRST PORTION EXAMINES PARTICULAR PROBLEMS THREATENING THE INDEPENDENCE OF THE JUDICIARY AND JUDGES' ABILITY TO MAINTAIN THEIR ROLE IN THE GOVERNMENTAL SYSTEM INCLUDING LACK OF ADEQUATE COURT FINANCING SYSTEMS AND THE DANGER CURRENT FINANCING SYSTEMS POSE TO COURTS' INDEPENDENCE AND EFFICIENCY. OTHER SEPARATION OF POWERS ISSUES, SUCH AS ADMINISTRATIVE RULEMAKING POWERS, USE OF ADVISORY OPINIONS CONCERNING DECISIONS ON THE PERMISSIBLE SCOPE OF LEGISLATIVE AND EXECUTIVE ACTIONS, THE JUDICIAL ROLE, AND JUDGES' SELECTION, TENURE, AND REMOVAL ARE DISCUSSED. THE EFFECTS OF PROPOSALS TO MODIFY THE LITIGATION PROCESS, PROBABLY IN THE FORM OF A COMMUNITY COURT, ARE CONSIDERED, AND THE ROLE OF THE COURTS IN CRIMINAL JUSTICE REFORM, PARTICULARLY REGARDING DETERMINATE SENTENCING, IS EXAMINED. THE FINAL SECTION TREATS THE PROBLEMS OF STATE COURTS IN THE FEDERAL SYSTEM. IT INCLUDES DISCUSSIONS OF THE NEED FOR MULTI-STATE SUPPORT PROGRAMS FOR STATE COURT SYSTEMS, JURISDICTIONAL AND ADMINISTRATIVE RELATIONSHIPS BETWEEN STATE AND FEDERAL COURTS, AND THE RELATIONSHIP OF CONGRESS TO THE PROBLEMS OF STATE COURTS AND THE NEED FOR FEDERAL SUPPORT OF STATE COURT SYSTEMS. REFERENCES ARE PROVIDED. (DAG)