This report presents findings from a study of state and local administration of Chapter 1 of the Education Consolidation and Improvement Act. The report is divided into six chapters. Chapter 1 presents an overview of the history of Title 1/Chapter 1 and the major conclusions of the study. Chapter 2 describes current administrative practices and changes in practices at both the state and district level. Chapter 3 explores factors influencing administrative practice. Chapter 4 describes how select administrative policies are interpreted and carried out, noting especially state influence on district practice. Chapter 5 examines the effects of state administration on compliance and program improvement and the contributions of Chapter 1 administration to program operation. Chapter 6 discusses trends in state Chapter 1 administration and possible options for Federal action. The major conclusion is that, since the law went into effect, state administrative structures have not been transformed, but considerable differences between states are seen, and emphases and activities are changing. By and large, states have not shifted from regulatory compliance to quality programming. Chapter 1 school and student selection requirements are reportedly well-implemented in school districts. The connection between administrative requirements and the quality of Chapter 1 programs has not been established and the contributions of evaluation and parent involvement requirements to Chapter 1 programming depend in large part on district influences. (KH)