The State of Washington commissioned research into various issues involving services to school dropouts under the terms of the Job Training Partnership Act (JTPA). Data suggested that each service delivery area (SDA) had its own set of internal dynamics (economic, cultural, demographic variables) that resulted in a characteristic pattern of educational attainment. National data were used in determining that years of school completed is a major determinant of both income and employment. Although Title II-A of JTPA was currently the largest federal program that specifically targets dropouts for participation, other federal and state programs also served dropouts. In addition, local agencies provided training and employment. A process for establishing goals for serving dropouts was implemented; this process defined and counted school dropouts, looked at use of census data, analyzed the data, adjusted baseline goals, and made adjustments for misreporting by participants. The model that was developed indicated that not all dropouts are equally likely to participate in JTPA programs and that SDAs should set goals that reflect the demographic composition of their region. (Appendixes include the demographic adjustment model, SDA adjustment data and goals, and a report on participant-reported education status.) (YLB)