In response to the growing dropout problem, most of the northeastern states (and islands) and many of their local districts have implemented policies and programs designed to reduce the number of students leaving school. This paper presents some observations, culled from various reports, for policymakers' consideration. Section I offers a set of general observations from the literature: (1) dropouts are the most visible segment of the many children not succeeding in school; (2) problems like teen pregnancy and parenting, depression, suicide, substance abuse, and family instability complicate the issue; (3) schools' root problem may be their unappealing atmosphere; (4) schools are not organized to produce educated, self-motivated workers; (5) policy solutions will depend on an overlap between educational research and successful practice; and (6) the opportunity and commitment to reshape schooling has never been greater. Next, vehicles to guide policy-making, including necessary vision, knowledge, multiple perspectives, active roles for affected persons, incentives for creative problem-solving, a judicious mix of mandates and assistance, and leadership and analysis, are discussed. Section III summarizes current state or island initiatives dealing with technical asssistance, program and performance mandates, financial aid, task forces, and governors' initiatives. Part IV provides a list of resources, with officials' names, titles, addresses, and phone numbers. (MLH)