This report reviews the current literature on dropouts and school discipline and discusses a survey of ten North Country high schools used to generate information to be used by schools when re-evaluating policies regarding these issues. Survey data was collected using questionnaires completed by the principals of the ten schools. Recommendations were made based on the literature review and survey results. They include (1) early and systematic identification of potential dropouts, (2) use of in-school suspensions as a disciplinary measure, (3) written guidelines for acceptable student behavior and the consequences if rules are broken, (4) involvement of students, parents, and faculty in the development of school disciplinary policies, and (5) an emphasis on the positive aspects of students' behavior. A checklist to aid early identification of potential dropouts is included. (MK)