This review of the key issues likely to surround the reauthorization of Chapter 1 covers allocation formulas, selection of schools and students, fiscal issues, and accountability. As Chapter 1 is the largest federal elementary and secondary education program, with appropriations of over $6.1 billion in fiscal year 1993, a concern of reauthorization will be how to more systematically identify key elements of the most effective programs, disseminate information about them, and provide additional incentives to adopt more effective policies and practices. Interest in modifications of allocation formulas has centered primarily on changes in the most recent census figures, which show different distributions nationally of poor children. Debate over reauthorization is also likely to focus on the most efficient methods of regulating local projects, methods that would assure accountability while providing flexibility to grantees to implement effective programs. In addition, in reauthorizing Chapter 1, Congress may consider ways in which parental involvement in the education of disadvantaged children can be enhanced without adopting burdensome requirements and decide whether or not educational and related services should be expanded to disadvantaged parents of Chapter 1 participants. (Contains seven references). (JB)