The report summarizes the incidence and the health, school- related, personal, economic, family-related, and community reasons for school dropout and truancy among Pennsylvania students. Although dropout rates on a Statewide basis are declining, there are many school districts and individual schools that have a serious problem. Specific aspects related to dropout and truancy efforts that are discussed here include available funding and program evaluations. The Committee recommends that the State consider expanding its efforts to address the needs of Hispanic youths, who have the highest dropout rate in the State; that schools districts should use their Instructional Support Teams to assist at-risk youths making the transition from one school to another; that the State should expand its financial support of successful prevention programs; and that the State Department of Education should take the lead in coordinating other State and local agencies to better address these problems. 9 tables, 4 figures, and 22 appendixes