This interim report examines the second-year implementation of dropout prevention programs in the 42 public schools that are part of the New York Dropout Prevention Initiative (NYDPI). Evaluators employed both qualitative and quantitative methodologies in gathering data on the 29 middle school and 13 high school program sites, and on the background characteristics and outcomes of the students participating in the program. The Appendix provides a broad outline of the primary research activities of the evaluation. Major findings include the following: (1) implementation reached a stage of routine activity for most of the components at most of the sites by May 1987; (2) the key variable in successful implementation was the quality of program staff, especially of the facilitator and the site supervisor; (3) preliminary analysis of Middle School Monthly Summary of Service Reports (MSSR) reveals differences in the interpretation of what constitutes a school-student conference or an individual guidance session, and substantial differences from one middle school to another in the frequencies of services reported; and (4) analysis of dropouts from the 1985-86 programs found no meaningful school-to-school difference in dropout rates for middle schools, but some high schools had higher dropout rates than others. Statistical data are included on 17 graphs and 16 tables. (FMW)