PROJECT HEAD START (HS), FEDERALLY-SUPPORTED AND OPERATING UNDER FEDERAL REGULATIONS WHICH PERMITTED NO MORE THAN 10 PERCENT OF ENROLLED CHILDREN TO BE FROM FAMILIES WITH INCOMES ABOVE THE PRESCRIBED POVERTY LEVEL, WAS CONDUCTED DURING THE SUMMER OF 1966 IN ALL 55 WEST VIRGINIA COUNTIES. IN 7 OF THESE COUNTIES, SUPPLEMENTARY STATE FUNDS WERE ALLOCATED IN ORDER TO PERMIT ENROLLMENT OF CHILDREN WHO, BECAUSE OF FAMILY INCOME IN EXCESS OF THE POVERTY LEVEL, WERE NOT OTHERWISE ELIGIBLE FOR HS PARTICIPATION. A PROGRAM OF EVALUATIVE RESEARCH WAS CONDUCTED TO COMPARE THE BENEFITS DERIVED FROM HS BY ECONOMICALLY DEPRIVED CHILDREN AND BY THOSE FROM MORE AFFLUENT HOMES. THE CALDWELL ACHIEVEMENT TEST AND THE DRAW-A-PERSON TEST, SELECTED AS MEETING THE BASIC CRITERIA OF ECONOMY, BREVITY, AND EASE OF ADMINISTRATION, WERE ADMINISTERED TO 675 CHILDREN. TEST RESULTS ARE REPORTED IN A PSYCHOLOGICAL EVALUATION WHICH CONCLUDES THAT ECONOMICALLY DEPRIVED CHILDREN ARE CLEARLY DEFICIENT IN ACHIEVEMENT AND INTELLECTUAL FUNCTIONING WHEN COMPARED WITH CHILDREN FROM FAMILIES WITH INCOMES ABOVE THE POVERTY LEVEL. THE PROJECT REPORT CITES THE NEED FOR MORE EXTENSIVE PRESCHOOL EDUCATION PROGRAMS AS A MEANS OF PROVIDING COMPENSATORY PREPARATION FOR ECONOMICALLY DEPRIVED CHILDREN. (JS)