THE FIRST SECTION OF THIS REPORT DESCRIBES HOW TITLE I ACTIVITIES WERE INITIATED IN ARIZONA AND THE VICISSITUDES OF COORDINATING THEM WITH OTHER PROJECTS FUNDED UNDER THE ELEMENTARY AND SECONDARY EDUCATION ACT AND OTHER FEDERAL ACTS. MAJOR ADMINISTRATIVE PROBLEMS INCLUDED (1) UNDERSTAFFING WHICH HINDERED THE STATE IN PROCESSING PROPOSALS, (2) CONFUSION ABOUT THE INTENT OF THE LAW AND THE NECESSARY ADMINISTRATIVE PROCEDURES, AND (3) ACUTE PERSONNEL SHORTAGES IN THE LOCAL DISTRICTS. EVALUATION PROCEDURES AS REQUIRED BY THE TITLE WERE HANDICAPPED BY LACK OF GUIDELINES AND INSTRUMENTS. THE MOST COMMON LOCAL MISCONCEPTIONS WERE ABOUT THE USE OF ALLOCATED FUNDS AND ABOUT THE WAYS TO DEVELOP FUNCTIONALLY REALISTIC PROGRAMS. THE GREATEST FRICTION AND DISCONTENT OCCURRED BECAUSE OF A LACK OF COMMUNITY ACTION PROGRAM-SCHOOL DISTRICT COOPERATION AND COORDINATION. EDUCATORS FELT THAT COMMUNITY AGENCIES USURPED PROFESSIONAL JURISDICTIONS AND DECISIONS. THE NEED FOR EARLIER CONGRESSIONAL FUNDING WAS THE MAJOR SUGGESTION FROM LOCAL SCHOOL DISTRICTS. THE SECOND SECTION OF THIS REPORT CONSISTS OF A COMPREHENSIVE ANALYSIS OF STATISTICAL INFORMATION ABOUT THE PROJECTS' ACTIVITIES. INTERLEAVED THROUGHOUT THE REPORT ARE NUMEROUS SHEETS OF QUESTIONNAIRES AND RATING SCALES SENT TO THE LOCAL SCHOOL DISTRICTS. (NH)