The KAPS (or Keeping All Pupils in School) program was initiated by the Baltimore City Public Schools in 1969, using funds provided under Title VIII of the Elementary and Secondary Education Act. This evaluation deals with the academic year 1970-71, the second full year of the project's evaluation. Most important among the goals of Project KAPS is the reduction of the dropout rate in the seven target schools. There were four other overall goals: (1) to increase attendance in the KAPS Kluster; (2) to increase project participants' achievement scores; (3) to increase critical thinking; and, (4) to effect positive attitude changes. KAPS is unique among Federally-funded projects in the Baltimore City Public School system. On a cost-per-pupil basis, the KAPS budget of $827,000 for 1970-71 is well-endowed in relation to ESEA Title I in Baltimore: $520-plus for each KAPS student as opposed to a Title I projection of less than $300 per target child. In addition, the Project is highly concentrated involving only seven inner-city elementary and secondary schools, the furthest apart of which are still within walking distance of each other. The overall student population of approximately 7,000 is very well defined, as in the community to be involved and served--the Broadway corridor in East Baltimore. (Authors/JM)