THIS DETAILED FOUR-PART REPORT ASSESSES THE FIRST YEAR OF COMPENSATORY EDUCATION PROJECTS ESTABLISHED IN IOWA UNDER TITLE I OF THE 1965 ELEMENTARY AND SECONDARY EDUCATION ACT. OVER 95 PERCENT OF IOWA'S SCHOOL DISTRICTS, MANY OF THEM IN RURAL AREAS, PARTICIPATED IN THE PROJECT. THE MOST SIGNIFICANT SHORTCOMING OF THE LOCAL PROJECTS WAS THEIR LACK OF INVOLVEMENT AT THE PRESCHOOL AND EARLY ELEMENTARY LEVELS. DURING THE FIRST YEAR READING REMEDIATION WAS THE PRINCIPAL OBJECTIVE OF MOST OF THE LOCAL PROJECTS, BUT IT IS HOPED THAT IN THE SECOND YEAR THEY WILL PURSUE A GREATER VARIETY OF PROGRAMS. THE 60 PROJECTS WHICH STATED CURRICULUM CHANGE AS A MAJOR GOAL AVERAGED 6.06 CHANGES. THE SALARIES PAID TO PROJECT ADMINISTRATORS AND TEACHERS WERE SLIGHTLY LOWER THAN THOSE PAID TO THEIR NONPROJECT COUNTERPARTS. AS COMPARED WITH A SAMPLE OF NONPROJECT PUPILS, TITLE I PUPILS HAD A LOWER LEVEL OF ACHIEVEMENT, LOWER ASPIRATIONS AND EXPECTATIONS, AND POORER SCHOOL ATTENDANCE. THE CHIEF INSTRUMENTS USED TO COMPARE THESE TWO GROUPS WERE THE IOWA TESTS OF EDUCATIONAL DEVELOPMENT, THE IOWA TESTS OF BASIC SKILLS, AND THE IOWA PUPIL INVENTORY. AN ATTEMPT WAS ALSO MADE TO ANALYZE THE INTERACTIONS OF PUPILS, TEACHERS, AND EDUCATIONAL PROGRAMS IN TERMS OF ACHIEVEMENT, ATTENDANCE, AND CHANGE IN ASPIRATION, TO FIND SIGNIFICANT PREDICTORS TO EVALUATE TITLE I PROJECTS. THE COMPLETE ANALYSIS OF THIS IMFORMATION WILL APPEAR IN THE FINAL REPORT. (LB)