The Chapter 188 Dropout Prevention Grant Program funds school districts with high percentages of low-income students and school dropouts to enable them to implement dropout prevention initiatives in grades 7 through 12. The emphasis in funding is on long-term school change in school policy, curriculum, governance, scheduling, programming, support services, parent involvement, and collaboration. In fiscal year (FY) 1988, the Chapter 188 Dropout Prevention Grant Program funded 42 programs for 5,919 students in 40 districts statewide for a total of $2.3 million. This final report on program activities for FY 1988 is divided into the following sections: (1) who is being served (program demographics); (2) program accomplishments; (3) program impact; (4) obstacles to success; (5) program improvement; and (6) conclusion. Overall, 5,919 students received services of some kind from dropout prevention grant activities in 1988. Of these, 72.8% were carryover students from the preceding year. White students made up 76.6% of program students, but Black, Hispanic, Native American, and Asian American students also benefitted. The annual dropout rate of 6.4% of program students contrasted favorably with the 9.8% dropout rate from the entire student population in the districts served. School reorganization, increased parent involvement, and staff development were other benefits made possible by grants under the Chapter 188 program. (SLD)