In 1982, Boston's businesses, the public school system, and local university leaders signed an agreement known as the Boston Compact to address the problems of dropouts and youth employment. The compact reflected the recognition that the dropout problem is a complex of interacting programs and represents a final step in a long chain of events and processes. Each of the partners agreed to the following measurable goals toward which they would work: 1) increasing college and employment rates of high school graduates, 2) adopting basic reading and math standards for all graduates by 1986, and 3) decreasing the dropout rate. In its first 4 years the compact has made measurable progress on the goals of jobs and minimum competencies, but the dropout rate has risen. Pressure to focus specifically on the dropout problem has increased, and since October 1985 a task force has examined the issue. A draft dropout prevention and reentry plan focuses on four areas: structural issues, basic education, alternative programs, and human services in the community. Tables, figures, and 21 references.