Today, over 70 percent of the students of the Providence (Rhode Island) public schools are people of color. The dropout rate in Providence has been steadily decreasing over the last decade, but it remains high, ranked 16th among large cities in 1992. Race and ethnicity are relevant factors in scholastic achievement in Providence, and for that reason a conference on dropout prevention among culturally diverse student populations was held. In one session teachers, students, parents, and community members attended a keynote address on diversity and education by Peter J. Negroni, followed by local perspectives on issues of education and diversity. In the second session, participants divided into small groups to discuss barriers to school completion and solutions to difficulties. A task force reviewed notes from these groups and prepared nine recommendations for policies to increase the graduation rate. In the keynote address, Dr. Negroni, Superintendent of Schools in Springfield, Massachusetts, noted the requirements for school transformation, headed by the requirement for equitable funding. Task force recommendations for increased response to the needs of diverse groups are summarized. An appendix provides a glossary and lists of 31 references for further reading and local organizations for further information. (SLD)