This study examined official records on retention from the Department of Education to ascertain national and state status and trends of retention/dropouts. The records showed that since 1983 the retention rate has peaked and is beginning to decline. In this investigation of the dropout situation in Indiana, questionnaires were administered to and were returned by 135 out of 290 superintendents, 139 out of 145 secondary school principals, and 120 out of 145 secondary guidance personnel across the State of administered to 135 superintendents, 139 secondary school principals, and 120 secondary guidance personnel across the state of Indiana. Respondents gave their perceptions of the nature and scope of the dropout situation and voiced their opinions about various programs they were operating to address the dropout problem. Two out of three respondents estimated their local retention rate to be 80% or higher. Most respondents were undecided about the usefulness of raising the compulsory attendance age from 16 to 17. Most superintendents (57%), principals (69%), and counselors (63%) reported feeling that for the majority of dropouts, the school was better off after they left. Concerning dropout prevention strategies, the most support was found for school-based programs designed to keep students in school longer and for the development of "reconnect" programs for dropouts. Interviews were also conducted with 100 Indiana dropouts. Data from official records, school administrators and counselors, and from dropouts are presented in 33 data tables. Recommendations based on the study findings are listed. The questionnaire for educators, the interview schedule for dropouts, and a listing of schools by type are appended. (NB)