IN THE FIRST OF THE THREE SECTIONS OF THIS EVALUATION REPORT, GENERAL INFORMATION IS PRESENTED UNDER THE FOLLOWING RUBRICS--(1) OPERATION AND SERVICES, (2) DISSEMINATION OF INFORMATION, (3) EVALUATION, (4) MAJOR PROBLEMS AREAS OF STATE ADMINISTRATION, (5) IMPLEMENTATION OF SECTION 205 (A) OF TITLE I, (6) COORDINATION WITH COMMUNITY ACTION PROGRAMS, (7) INTERRELATIONSHIP WITH OTHER TITLES OF THE ELEMENTARY AND SECONDARY EDUCATION ACT AND WITH OTHER FEDERALLY FUNDED PROGRAMS, (8) COOPERATIVE PROJECTS BETWEEN DISTRICTS, (9) NONPUBLIC SCHOOL PARTICIPATION, (10) SUPPLEMENTARY MATERIALS. INCLUDED IN THE MORE COMPREHENSIVE SECOND SECTION ARE DESCRIPTIONS OF LOCAL EDUCATIONAL AGENCY PROBLEMS, PREVALENT ACTIVITIES AND SERVICES, STATE SCHOOLS FOR HANDICAPPED CHILDREN, EDUCATIONAL NEEDS, AND A GENERAL ANALYSIS OF TITLE I EFFECTIVENESS. THE FINAL SECTION CONTAINS DATA ON ATTENDANCE, DROPOUT RATES, HIGHER EDUCATION, RESULTS OF STANDARDIZED TESTS, THE OBJECTIVES AND STRATEGIES OF COMMONLY FUNDED PROJECTS, AND PROJECT EFFECTIVENESS. THE APPENDIXES CONTAIN INFORMATION ON A SUMMER INSTITUTE FOR TEACHERS AND OTHER RELEVANT MATTERS. ALTHOUGH PROBLEMS OF STAFFING, MATERIALS, AND FACILITIES SOMEWHAT HINDERED THE EFFECTIVENESS OF PROJECT ACTIVITIES, THE PROJECT WAS CONSIDERED GENERALLY SUCCESSFUL. READING INSTRUCTION, HEALTH AND PHYSICAL EDUCATION ACTIVITIES, AND FOOD AND WELFARE SERVICES ARE REPORTED TO BE THE MOST EFFECTIVE ACTIVITIES. (LB)