A major goal of public education is to provide all students an equal chance to achieve to their full potential regardless of background. To attain this goal, schools often must compensate for the disadvantaged backgrounds of some students who have needs that cannot be fully met by the regular instructional program. Compensatory programs represent a way to assist these students. This two-part report views Chapter 1 and migrant program activities in North Carolina during 1987-88. The review of Chapter 1 programs examines program administration, participants served, instruction delivered, staff employed, funds expended, and outcomes measured. In 1987-88, North Carolina Chapter 1 allocations totaled $72.4 million. Seventy-five percent of schools were eligible to receive Chapter 1 funds, based upon poverty indices, and 92% of eligible schools provided services. Most services were provided to students in grades 4-8. At least 75% of the Chapter 1 instruction occurred in a location other than the regular class. These "pullout activities" were successful as measured by students' scores. Reading was the most prevalent instructional activity. Program costs were reasonable. Review of migrant programs suggests that this North Carolina migrant education program is adequately meeting the legislative requirements and the national program objectives. Recommendations generally encourage continuing current successful migrant education programs. This document contains numerous tables and figures. (Author/DHP)