State, school and community must take responsibility for cooperative educational reform targeted at improving educational opportunities for poor, minority students who are at risk of dropping out of New York State's public high schools. Program recommendations include the following: (1) early childhood education programs; (2) mechanisms to ensure equal educational achievement; (3) innovative learning environments; (4) elimination of limitations on local school districts; (5) greater autonomy for school personnel tied to increased accountability; (6) teacher recruitment, training and in-service policies and practices that encourage respect for racial and cultural diversity; (7) recruitment, retention and promotion of minority and bilingual personnel; (8) study of cultural diversity; (9) services for language minority students; (10) revised special education practices; (11) comprehensive data systems; (12) parent participation; (13) discipline policies and behavior standards; and (14) individualized and group services provided through collaborative arrangements. Fiscal recommendations include the following: (1) fiscal resources to support the program recommendations; (2) consolidation of selected formula aid, and competitive grants; (3) enhanced flexibility in school-based administration; (4) increased state aid; (5) fiscal incentives to school districts for improved performance; (6) enhanced equity in the distribution of State aid; and (7) greater investment in the physical conditions of the schools. A brief bibliography is included. (FMW)