The New Mexico Dropout Report is published annually to provide information for educators, parents, legislators, and other interested parties on the status of education in New Mexico. This report describes the extent and nature of the school dropout dilemma in the state, providing information on the numbers and percentages of dropouts by grade, gender, ethnicity, and reason for dropping out of school. For the past ten years, the Public Education Department has worked cooperatively with the National Center for Education Statistics (NCES) to establish national definitions and formulas that make dropout data collection comparable across states. The task of establishing national standards requires the continual assessment and updating of procedures and methodologies to ensure consistent and reliable dropout data. The information provided in this report is generated using the methodology prescribed by NCES. An explanation of the methodology is included. Schools in New Mexico are actively pursuing programs and strategies to meet the needs of at-risk students. Several school districts have also established agreements with outside agencies to jointly provide for the educational and social needs of students who are at risk of dropping out. However, New Mexico schools continue to be challenged in obtaining the resources required to meet the needs of at-risk students. (Contains 15 figures and 5 tables.) [ERIC version does not include bibliography as listed in Table of Contents.]