This report on drug abuse in schools is based on 6 years of analysis, focus groups, and field investigations. Prior research has determined that if young people do not engage in smoking or substance abuse by age 21, their chances of engaging later are next to nothing. It has also been determined that next to parents, schools have the greatest influence on children's lives. This report is the first comprehensive analysis of all available data on substance use in schools. It is designed to clarify how tobacco, alcohol, and illicit drug use affects schools and offers suggestions on how to make children and schools substance free. Key findings include the fact that over 50% of students report that drugs are used, sold, or kept at their schools, and that zero-tolerance policies are used more for expelling students rather than identifying students in need. Several problems are discussed that are caused by schools' inability to stop or treat substance abuse. A look at high-risk students and who shares responsibility for the problem is included. Ten key interventions are suggested that both families and schools can employ to stop substance abuse in students. Appendixes include: Survey Descriptions; Safe, Disciplined and Drug-Free Schools Expert Panel: Exemplary Programs 2001; and Safe, Disciplined and Drug-Free Schools Expert Panel: Promising Programs 2001. (Contains 3 appendixes, 1 table, 14 figures, and 329 references.) (JDM)