This report presents findings from a 5-year study of the impact of educational reform on Texas students who are in situations that put them at risk of school failure or dropping out. Data were derived from three sources: a statewide survey of high school principals; a longitudinal analysis that tracked 1,800 at-risk high school students from school year 1988-89 through 1992-93; and case studies of eight high schools. The study focused on five specific policies that were implemented as part of a larger education-reform movement that began in Texas in 1983: increased graduation requirements, the exit-level competency test for graduation, restrictions on participation in extracurricular activities, an attendance policy limiting the number of allowable absences, and a drivers' license law requiring proof of enrollment to obtain a license. School staff expressed predominantly positive attitudes toward the reform policies in general. However, they were less positive about implementation and impact of the specific reform policies. They expressed two primary concerns--the accuracy of the process for identifying students at risk, and the differential impact of polices on identified at-risk students and other students. Recommendations include: (1) Continue to analyze the concept of students at-risk to improve its usefulness in directing limited education resources; (2) provide school districts with greater discretion in directing resources and services to students by making the state at-risk criteria optional; (3) continue to provide technical support and training to school district staff in effective risk identification and existing practices; (4) continue to closely monitor the differential impact of state-level policies on students at risk versus other students; and (5) continue to emphasize remedial and compensatory programs that accelerate instruction. (LMI)