This annual report provides information on the CAL Community School, a small K-12 school that serves the communities of Alexander, Coulter, and Latimer, Iowa. The mission of the school is to provide a positive educational environment, maintain high academic standards, and promote the value of life-long learning among students. In addition, the school encourages students' character development through valuing respect, integrity, positive relationships, personal responsibility, citizenship, and vision. Goals identified by the school's community include that students will learn to live self-directed accountable lives, will communicate effectively, will be able to process and apply knowledge and academic skills, will effectively apply personal life skills, will work and think independently and collaboratively, and will behave as members of a global society. During 1995-96, CAL Community School designed and built a state-of-the-art communication network classroom allowing students, staff, and community members to interact with learning sources across the state; designed and installed a local area network that provides schoolwide Internet access; implemented staff development programs; introduced a model to assist students and staff in solving academic and social problems; expanded assessment for evaluating student achievement; updated the district policy manual; conducted a retreat that identified connections between CAL's learning objectives and character development; and honored employees for their service. During 1995-96, students were recognized for their academic achievement, attendance, completion of college courses, team sports and band, and other state competitions. The report also includes information on special programs, extracurricular programs, achievement test results, follow-up on 1995 graduates, enrollment and attendance, staff, and school finances. (LP)