This paper reflects the current state in Russian education which has a strong correlation with the socio-economic crisis. The responsibilities for education are held partially by the state and partly by other social institutions and as a whole, all of them form the system of education. There is a rather wide set of laws, decree statements, and rules about education in Russia, but they currently are far removed from practical realization. The situation with financing educators, schools, and universities is very critical at present in Russia. The idea of differentiation and democratization in School Reform has had both positive and negative effects. To rescue the Russian system of education from a crisis, a strong state policy in education and a strong system of implementation are required.