State policies regarding funding programs to serve at-risk students and dropouts through school-to-work activities in alternative learning environments were examined in a national survey. Data were collected through the following: surveys sent to finance directors in state departments of education and education committee chairs in both legislative chambers; telephone surveys; and independent research of policy documents and state statutes. Responses were received from all 50 states and the District of Columbia. Although no comprehensive statewide school-to-work systems serving substantial numbers of students were found, some states were requiring schools and departments of education to identify at-risk and dropout students. State-level policies regarding funding to follow at-risk and dropout students into school-to-work programs proved unclear. Some states were allowing state per-pupil funding for high school students to be used for learning opportunities outside regular classrooms. Among the types of options and alternative learning environments available for at-risk and dropout students were the following: school enrollment options; transfer agreements; vocational education schools, charter schools; alternative schools; learning centers; postsecondary enrollment options; and special education for institutionalized or homeless students. Financial incentives and performance standards were also examined. (Eight case studies, a list of contact persons, and 211 footnotes are included.) (MN)