Compensatory education funds permit local educational agencies (or school districts) to use a variety of highly specialized materials, resources, and training for the pupils and teachers in eligible schools. These special compensatory services (as individual projects) are systematically assigned on a pupil needs basis. Compensatory education programs have made a significant impact on the achievement characteristics of the pupils served. Although the current level of pupil achievement is not as high as would be expected, significant inroads have been made toward arresting their declining achievement trend. Moreover, there is strong evidence which suggests that compensatory education programs have caused the establishment of viable, prescriptive instructional services. When considered as comprehensive, prescriptive inputs directed toward the needs of the pupils in the eligible schools, these services become systematic efforts made to upgrade the educational program and the level of pupil services of each school. In this behalf, individual compensatory educational projects become the ingredients for augmenting the eligible schools' educational program, as well as special efforts to administer to identified needs. For these reasons, the decision to expand, discontinue, or reduce a single project is not a simple one--the decision has to be made within the context of the total strategy of a school system's program. (Author/JM)