THIS REPORT IS AN EVALUATION OF A NEW YORK CITY HIGH SCHOOL GRADE REORGANIZATION PLAN WHICH REMOVED THE NINTH GRADE IN 38 JUNIOR HIGH SCHOOLS IN DISADVANTAGED AREAS AND TRANSFERRED THE STUDENTS TO EITHER ACADEMIC OR VOCATIONAL HIGH SCHOOLS. THE GOALS WERE TO ACHIEVE QUALITY INTEGRATED EDUCATION AND TO IMPROVE THE ETHNIC BALANCE OF THE HIGH SCHOOLS. EVALUATIONS WERE CONDUCTED AFTER THE FIRST AND SECOND YEARS OF OPERATION. QUESTIONNAIRES, INTERVIEWS, AND SCHOOL VISITS PROVIDED THE DATA. EXPLORED WERE THE AREAS OF ETHNIC TRENDS, INTEGRATION AND DESEGREGATION, PLANT UTILIZATION, SCHOOL ORGANIZATION AND ADMINISTRATION, CURRICULUM MODIFICATIONS, AND THE REACTIONS OF ADMINISTRATORS, TEACHERS, AND STUDENTS. BECAUSE ONE PURPOSE OF THE REORGANIZATION WAS TO DECREASE SCHOOL LEAVING AND IMPROVE ACADEMIC ACHIEVEMENT, FINDINGS ON STUDENT PERFORMANCE ARE PRESENTED IN TERMS OF ATTENDANCE AND TURNOVER PERCENTAGES, ACADEMIC RECORDS, AND READING COMPREHENSION GAINS ON CITYWIDE TESTS. THE MAJOR RECOMMENDATION IS FOR A MORATORIUM ON THE FURTHER TRANSFER OF JUNIOR HIGH SCHOOL STUDENTS UNTIL THE HIGH SCHOOLS CAN ABSORB AND ADJUST TO THE PRESENT ENROLLMENT OF DISADVANTAGED STUDENTS. ALSO NEEDED IS A DOUBLING OF FUNDS TO BETTER SERVE THE ADDITIONAL STUDENTS AND TO PROVIDE INSERVICE TEACHER TRAINING AND SPECIALIZED SCHOOL SERVICES. (NH)