This report presents an analysis of graduation rates for the New York City public high schools for recent years. The analysis is based on cohort data published by the City Board of Education. Preoccupation with the dropout rate may obscure the more important fact that the graduation rate has not improved. The proportion of New York City public high school entrants who drop out within 4 years has declined steadily, from 21.8 percent for the class of 1986 to 17.2 percent for the class of 1991. Only 41 percent of the class of 1986 graduated within 4 years, and this rate declined to a low of 37.6 percent in 1990. In 1991, the graduation rate rose slightly to 38.9 percent. Neither has the long-term graduation rate improved. Seven years after entering high school, only 57 percent of the classes of 1986, 1987, and 1988 had graduated, and rates did not improve in successive classes. Students may stay in school longer, but they are still not able to achieve performance standards. Improving the graduation rate will certainly require enhancing students' opportunities to take and pass required courses. Four tables present cohort data. Two appendixes (seven tables) further summarize study information. (SLD)