This report was prepared in compliance with Chapter 4, Article 2.3 of the California Education Code. Section 48644.3 directs the State Department of Education to evaluate the increase in availability of opportunity classes and programs in grades 7 through 9. The report has four sections. Section I, Introduction, chronicles events prior to implementing the opportunity expansion incentive program specified in Article 2.3. Section II, Implementation Years, 1984-85 and 1985-86, summarizes outcomes of the incentive program. These outcomes include district participation, average daily attendance (ADA), additional ADA over the base year, excess costs, and incentive dollars reimbursed to districts. Section III, Effectiveness Indicators, examines the extent to which the objectives of Article 2.3 were met. Section IV, Conclusions and Recommendations, summarizes the report findings by identifying factors constraining the incentive program's effectiveness and concludes with recommendations. (SI)