This is the 10th annual report on conditions affecting the Racine Unified School District RUSD). Analysis continues to focus on the long-term historical trends in RUSD, comparing RUSD to nine peer school districts and the State of Wisconsin. RUSD peer districts are Wisconsin's largest (Milwaukee Public Schools are not included) and their enrollments are similar to the enrollment in Racine. Findings are grouped based on RUSD quality objective measures: student achievement, student engagement, and operational efficiency. Student achievement includes test scores and graduation rates; student engagement includes attendance and behavior; and operational efficiency includes finance data. Major findings include: (1) RUSD enrollment for 2006-07 increased; (2) Minority enrollment at RUSD increased, and is moving toward a majority/minority enrollment; (3) State aid to RUSD is up; (4) For the fifth consecutive year, RUSD improved its truancy rate; the 2005-06 rate of 8.7% was the lowest since 1996-97 and below the statewide rate of 9.7%; and (5) Student performance measurements at RUSD yielded mixed findings. Three appendixes are included: (1) Definition of Terms; (2) Peer District Rankings Tables; and (3) Individual Schools. (Contains 24 figures and 22 tables.) [This report was commissioned by Education Racine, Inc. For the "Ninth Annual Comparative Analysis of the Racine Unified School District", see ED504523.]