California's demonstration programs in reading and mathematics are the State's only educational programs whose funds are used exclusively to serve low-achieving students from disadvantaged areas at the junior high-middle school level. The purpose of the programs is threefold: to establish exemplary programs in reading and mathematics instruction in Grades 7, 8, and 9; to develop the reading and mathematics competence of low-achieving students; and to disseminate these successful practices to other educators. The findings of a series of annual reports submitted to the Legislature since 1970 show that the demonstration programs have adhered closely to the legislative mandate in serving those students in disadvantaged areas. They also show that low-achieving students in reading and mathematics can equal or surpass expected standards of achievement as the result of the programs' intervention. The report shows, moreover, that the demonstration programs have operated with increasing efficiency over the years, both in use of funds and in promoting student achievement. Finally, the demonstration programs' information and materials have been extensively adapted and utilized by other educational professionals throughout California as the result of dissemination activities. The State Department of Education recommends that the current demonstration programs in reading and mathematics be continued because they have been effective in promoting student achievement. Further, the legislature should consider three additional options: (1) obtaining new information on demonstration program practices; (2) expanding these practices to new schools; and (3) developing new demonstration programs in other curricular areas. (KH)