The Summer School Functional Education program of the Kalamazoo (Michigan) State Hospital was evaluated in terms of the program's effectiveness in enhancing the emotional health of participants and reducing their institutional dependency (adjustment patterns dependent on the structured and protected environment of the institution). Subjects were 64 emotionally disturbed institutionalized children who participated in the program, which involved a relaxed atmosphere, reduced structure, greater student participation, and approximation of an out-of-institutional environment by field trips, camping experiences, and other means. To obtain evidence of level of adjustment, the following variables were measured by questionnaire before and after the program: personal adjustment, alienation, self-concept and occupational aspirations (reality orientation), and identification of significant others. No dramatic changes occurred. In the new situation, children remained stable in adjustment, self concept, perceptions of evaluations of others, and selection of significant others. Alienation dropped and occupational aspirations became more realistic. It was concluded that such a program contributed to reduction of levels of alienation and increase in realistic attitudes. (KW)