This document explores the interaction between the Title I legal framework and selected state and local compensatory education programs (SCE). Specifically, it is concerned with: (a) whether the language of the Title I legal framework setting forth the basic local educational agencies (LEA) program requirements applicable to SCE programs is sufficiently clear and (b) whether these basic LEA program requirements restrict unnecessarily the design of SCE programs for educationally deprived children. The six states selected for study were: California, Michigan, Washington, Maryland, Florida, and Pennsylvania. The first part of the paper describes the legal framework of Title I and the state compensatory education program and other special state programs in the six states surveyed. Key similarities and differences between the state program and Title I are highlighted. This discussion introduces the issues presented in Part 3 of the paper and provides an overview of the project's major findings, conclusions, and recommendations. Part II of the document includes a detailed description of the six SCE legal frameworks. The third part of the document analyzes the interrelationships between the state programs and the relevant Title I requirements and analyzes the problems that arise in coordinating Title I and SCE efforts. In addition, the relationship between Title I and special state programs other than SCE programs is explored. Statutory and regulatory changes in Title I to better accommodate SCE and other special programs are recommended. (Author/AM)