This report reviews Chapter 1 programs in North Carolina during 1986-87. Data are provided on the following topics: (1) program administration; (2) Chapter 1 programs in local education agencies; (3) program participants; (4) instruction; (5) staff; (6) expenditures; (7) training; (8) parent involvement; (9) student achievement; (10) evaluation results; (11) Chapter 1 programs for delinquent children; (12) general findings; and (13) recommendations. More than 113,500 North Carolina students were served by Chapter 1 in 1986-87. Comparison of pre- and post-test scores reveal that these participants measurably increased their skills in reading and mathematics. Data are presented on over 26 figures. Photographs illustrate the text. (BJV)