The Neighborhood Schools Project in Iowa was designed to evaluate a new special education service delivery system emphasizing prereferral intervention, collaboration, problem solving assessment, and frequent performance monitoring. Approximately 130 students with Individualized Educational Plans at 12 schools and an equal number at comparison site schools were the subjects. Major findings included the following: teachers and principals were supportive of the collaborative model; prereferral interventions were seen as useful and resulted in fewer special education placements; problem solving assessments were found to be useful but to require significantly more time than traditional assessments; teachers gradually adopted frequent performance monitoring; there were no significant differences in academic achievement, social skills, or school behavior between students in the two delivery systems; and students in the experimental schools demonstrated significantly better self-concepts and attitudes toward school. Appended are the survey forms for regular teachers and principals, a listing of Project accomplishments, and a draft evaluation report by Laurence R. Sargent et al. titled "Promoted vs. Non-promoted Kindergarten Students in the Des Moines Public Schools, 1989-1990." This study found that the promoted students with special needs, who were provided services by itinerant teachers, generally performed better than those who were not promoted and were provided special class instruction. (DB)