This annual report provides information about dropouts in Texas public schools for the 1996-97 school year. The report includes (1) historical dropout information; (2) a summary of dropout rates based on dropout characteristics and school district characteristics; (3) a listing of dropout rates broken down by county, district, and campus; and (4) national comparative data. After the end of each school year, districts report dropout information for grades 7-12 using the Public Education Information Management System. Highlights from the report include: (1) in 1996-97, a total of 26,901 students in grades 7-12 dropped out of Texas public schools; (2) statewide, the annual dropout rate was 1.6 percent, a slight improvement over the 1995-96 rate of 1.8 percent; (3) over 80% of dropouts were overage for grade; (4) males were more likely to drop out than females; (5) Hispanics made up the largest proportion of dropouts (51.5 percent); (6) the largest school districts and those with poor performance on state standardized tests had the highest dropout rates; and (7) Texas had the second lowest dropout rate of 29 states using comparable data collection methods. Dropout rates are reported by ethnicity, grade level, various indicators of risk or disadvantage, and reasons for leaving school. Appendix A contains 1996-97 dropout rates by district characteristics. The appendix also explains category descriptions, which include enrollment, location (urban-rural), property wealth, total tax effort, cost of education index level, and others. Appendix B is a lengthy data table of over 75 pages that details dropout rates by district and school, with separate figures for Whites, Blacks, Hispanics, and economically disadvantaged. Enrollment and estimated longitudinal dropout rate are included for each school. The report contains 11 data tables and 20 references. (CDS)