Chapter I of the Education Consolidation and Improvement Act (ECIA) of 1981 provides Federal funds to supplement State-provided instruction for educationally disadvantaged students. Reading, language, mathematics, and staff development components operated in the 15 sites. After diagnostic testing, students with the greatest educational deficiencies received individual assignments based on identified needs. Instructional methods included individualized, group and whole class instruction. Staff development included inservice training, workshops, seminars, and consulting services. Although programs varied, most schools had teaching assistants and other supplementary staff. Growth in achievement, measured by the Test of Adult Basic Education, averaged 1.3, 1.3, 1.3, and 1.0 months for each month in the program in total reading, mathematics, language, and spelling, respectively, for 1981-82. Some of the reasons for these successes were individualized teaching strategies; continued updating of teaching strategies, materials and equipment; increased ability of teachers to work with students with learning disabilities and to conduct individual educational evaluations; and low student/staff ratio. Chapter I has numerous benefits: (1) hard-to-motivate students make measurable educational gains; (2) classroom teachers have more time for students at all achievement levels; and (3) the well-defined, structured educational process required for Chapter I affects the management of the total educational program. Recommendations for improvements in meeting student, staff, and program needs are provided. Data tables, figures, and lists of Youth Authority annual reports from 1967 to 1981, 13 California Youth Authority Education Research Series Reports, and 3 other references are also included.