This report, intended for local and state policy makers and practitioners, summarizes the findings and implications of class-size reduction (CSR) in California. The report's findings provide a comprehensive picture of California's CSR initiative during its first 2 years, covering such topics as implementation, resources, teacher qualifications, teaching practices, parent involvement, and student achievement. The paper offers a synopsis of the legislative background of CSR and describes some of the responses to implementation of the law. For most schools, the greatest obstacle to implementation was a lack of space, followed by insufficient funding, insufficient time to plan, and a lack of qualified staff. The report offers an overview of how the teacher workforce changed with CSR. Although teaching practices did not change significantly with implementation, teachers reported being able to spend more time with problem readers and less time disciplining students. Parents had more contact with teachers and expressed more satisfaction with their children's education. Small gains in children's academic achievement, regardless of ethnicity, income status, or English-language ability, were evident. However, CSR led to overcrowding in many schools, and poorer districts were unable to attract as highly qualified teachers as the better-off schools. (RJM)