America has not attained its goal of a fully literate and educated population. In order to assure high school graduation for all students, states must undertake new initiatives to reach the one out of four youth who does not graduate. Substantial changes in education policy and in school practice are necessary to accomplish this objective. These changes include the following: (1) increase government funding for education at federal, state, and local levels; (2) strengthen the practice of teaching; (3) change school programs so that they are more effective; (4) create partnerships among parents, communities and schools; (5) improve programs for health, housing and other social sectors which have an impact on student well-being and (6) initiate outreach from the schools to other public and private agencies which may be able to help with these changes. (VM)