An examination of Chapter 1 services delivered in St. Louis, Missouri and Lincoln, Nebraska, the coordination of those services with other categorical programs, and the effectiveness of those services for Chapter 1 students revealed the following conclusions: (1) relatively few Chapter 1 students receive multiple categorical program services; (2) the multiplicity in program participation more frequently occurs within the Chapter 1 program, where students could participate in reading and mathematics programs simultaneously; (3) a five-year comparison of funding and participation levels demonstrates a sharp reduction in both for the St. Louis Public Schools, in part due to a reduction in the overall student population; (4) characteristics of recipients of categorical services revealed that the grade level of most participants reflect district or state philosophy in the delivery of service; (5) Chapter 1 students in St. Louis score five to ten NCEs lower than district students; (6) Chapter 1 students receive services for almost three years on the average; (7) of the first grade cohort that was continuously enrolled for five years, almost 85 percent in St. Louis participated in Chapter 1 in some point in time; (8) the most prevalent pattern for receiving multiple years of Chapter 1 services was alternating years of reading, math, or both services; (9) average achievement level of Chapter 1 students varied with length of participation; (10) the longitudinal achievement of the first grade cohort of Chapter 1 participants remained relatively stable over time; and (11) in St. Louis over a five-year period 60 percent of Chapter 1 students and 9 percent of non-recipients have been retained in a grade. Data are presented on 16 tables. (BJV)