The first in a series reporting on strategies to improve children's readiness for school and to help schools be better prepared to meet the needs of all children, this report traces Arkansas' efforts to improve reading instruction. This issue discusses the following topics: (1) Reading in the First Grade: Now or Never? (2) Limitations and Innovations; (3) Early Literacy Small Group Instruction; (4) Supportive Classrooms; (5) Supportive Schools; (6) The Arkansas Early Childhood Initiative; (7) Summer School and Staff Development; and (8) Educational Cooperatives. A special emphasis in this issue is Reading Recovery, a short-termm research-based, early-intervention program for first-grade children with serious reading problems. Reading Recovery's effectiveness in reducing referrals to special education, other benefits of the program, and the training of Reading Recovery teachers are also discussed. The issue concludes by noting that Reading Recovery is not a mandatory part of the school curriculum, thus necessitating an increased awareness of the program so that other children may gain this benefit. Contains 10 references. (WJC)