This document presents recommendations to the Texas state legislature for meeting a 1997-98 goal of reducing the projected longitudinal and cross-sectional state dropout rates. Data for 1986 indicate that approximately 86,000 students were dropping out of Texas schools every year. The recommendations presented here were determined: (1) by tracing dropout rate reduction efforts in Texas from a historical perspective; (2) by an examination of the findings of major national reports and recent comprehensive plans from other states; and (3) by a review of the research literature concerning best educational practices for students at risk of dropping out of school. The resulting 19 recommendations address changes in statute, policies, funding resources and programs in the following areas: (1) attendance and driver's license eligibility rules; (2) changes in at-risk identification criteria; (3) a state media task force on dropouts; (4) improved dropout rate reporting; (5) enhancing leadership and interagency cooperation; (6) support for educational policy and practice issues; (7) elementary education through multi-age classrooms, guidance counselors, continuous progress, and cooperative learning; (8) enhancement of middle grade education through implementing recommendations of a national study; and (9) improvement of high school education through alternative education, immigrant students and teen parent initiatives. Thirty-nine references are appended. (JB)