Compensatory education describes the special programs and services provided to students who are not succeeding in school and who do not qualify for special education. Educators define these students as "at risk"--at risk of school failure and a difficult transition to productive adult life. A recent study of compensatory education by the Texas Center for Educational Research found Texas school districts in various stages of implementing new compensatory programs. This report summarizes the recent review, and considers some of its recommendations. Compensatory education was examined in 22 school districts in 1992. School districts have begun to diversify compensatory education, and these programs were divided into the following nine categories: (1) alternative schools; (2) pregnancy and parenting programs; (3) whole school programs; (4) one-to-one programs (5) classroom programs; (6) small group programs; (7) summer school; (8) family involvement programs; and (9) group counseling and support programs. The effectiveness of these programs is difficult to determine because of the widespread absence of evaluation efforts tied to program objectives. Eligibility criteria are broad and sometimes inclusive of all students in a district. Costs were calculated for each of the nine categories. Alternative schools are the most costly; and summer school, family involvement, and counseling are the least expensive. Recommendations center on the need to have plans that are more explicit, with the roles of districts and the state clearly defined. Two tables summarize study findings. (SLD)