Researchers have long investigated whether smaller classes improve student achievement. Their conclusions suggest that class size reduction (CSR) can result in greater in-depth coverage of subject matter by teachers, enhanced learning and stronger engagement by students, more personalized teacher-student relationships, and safer schools with fewer discipline problems. In 1999, Congress began appropriating funds so schools could hire additional teachers and invest in other CSR measures. About half of the states have begun to reduce K-3 class size. One of the main goals of CSR is to close the achievement gap between white middle class students and poor students of color. This digest reviews recent research findings on the CSR experiences in Tennessee, Wisconsin, and California. The following recommendations for maximizing the benefits of CSR are presented: CSR should be integrated with other school reform efforts, including standards-based policies; CSR should be first implemented as a trial in selected districts, preferably in low-income areas and with large minority student populations, before a large-scale rollout is attempted; and additional funds should be allocated for extra resources for students of color and with low income, including placement in even smaller classes. (Contains 11 references.) (SM)