This study from the city school district in Saginaw, Michigan measures the effects of the Chapter 1 Academic Achievement program on fifth grade students during the 1981-82 school year. A total of 463 students were classified into four categories depending on whether they were single year, multiple year, or continuous participants in the program; or whether they were from the regular education program. Three different standards were used to gauge the growth of the three groups receiving compensatory education: (1) normal curve equivalent; (2) normal growth; and (3) relative growth. The single and multiple year groups failed to meet the criterion score in reading, while the continuous group exceeded it. All three groups exceeded normally expected reading growth but failed to do so in mathematics. On the index that compared the compensatory groups to the regular group, only the continuous group showed a decrease in the gap between their group and the comparison group. The recommendations were the following: (1) future studies such as this one should be outlined in advance to assure that accurate longitudinal records are kept; (2) special studies are needed for students who test high but are still in need of compensatory education; and (3) these kind of data should be collected state-wide and shared with all of the educational community. Tables, appendices providing calculation instructions in gap reduction research design, and a brief bibliography are included. (VM)