In fall 1993, the Austin (Texas) Independent School District (AISD) contracted with two community-based organizations to serve eligible AISD dropouts during the 1993-94 school year. The American Institute for Learning and Middle Earth Unlimited, Inc. provided services through the Creative Rapid Learning Center (CRLC) and the 78702 RAYS program, respectively. The CRLC program served 216 youths and the RAYS program served 59. At best, the dropout recovery program reduced the district's annual dropout rate an estimated 1.3 percentage points. The dropouts served represented about 13% of district dropouts each year. Of the youths served, none earned a high school diploma, and only 24% completed the requirements for the GED. While only 1 student returned to school, 78 remained enrolled. However, 129 (47%) left the program. It is recommended that the district continue to place the greater proportion of its resources into dropout prevention, and dropout recovery in dropout prevention but that the district should continue to contract with community-based agencies to provide dropouts with further education and job training, while encouraging the community agencies to serve many more youths. Eight figures and five attachments present findings and supplemental information. (Contains 14 references.) (SLD)