In 1985-86, after five years of implementation, the New York City (New York) Public Schools transferred responsibility for the Promotional Policy Program to the community school district. This report provides information about the success of the remedial reading program under this new organization in terms of student outcomes. Promotional "gates" in grades 4 and 7 were devised in 1980, with a students' promotion dependent upon meeting the criterion for that grade on the city-wide reading test. Students who failed to meet the criterion set on the California Achievement Test in reading or (for eligible limited English proficient students) on the Language Assessment Battery were eligible for the program. A total of 13,734 fourth- and seventh-grade students was eligible. Of the 12,248 students with both pre- and post-test scores, 81.5% met the criterion for their grade in August of 1985, January of 1986, or April of 1986. However, average gains were less than those made by students who participated in previous years. Patterns of achievement by promotional category were different from those of prior years. Achievement of students in an extension program continues to be problematic; gains of eighth-grade extension students, particularly, do not match those of other program students. It is recommended that the central and district program administrators review the programs for adequacy of teacher preparation and curriculum materials. Thirteen data tables are included. (TJH)