Arizona's Serve-America program, administered by the Arizona Department of Education (ADE), began in fiscal year 1992-93 under the auspices of the National and Community Service Act of 1990. Serve-America links community service projects with schools and youths in grades K-12. This second annual report documents the second year of project implementation and updates the policy context in which programs are operating. It focuses on 15 sites--including both schools and community-based organizations--funded to implement community service programs during 1993-94. A pre- and post-test study investigated the relationship between "at-riskness" and "connectedness to the community." Findings indicate that the projects made considerable progress toward accomplishing proposed goals and resulted in positive outcomes for local communities and student volunteers, particularly those at risk. Some projects were more effective than others in positively influencing at-risk participants. The following recommendations are offered: (1) the ADE should continue to support community service programs; (2) the ADE should sponsor more technical assistance and evaluation training; (3) the state should expand training and assistance; and (4) further research about Arizona's effective community service projects is warranted. A total of 10 figures and 9 tables are included. Appendices contain project profiles, ADE site observations, student survey instruments, and methodological notes. Contains 46 references. (LMI)