DESCRIBED IN THIS REPORT IS THE MODEL SCHOOL DIVISION (MSD) WHICH SERVES THE INNER-CITY PUBLIC SCHOOLS OF WASHINGTON, D.C. FUNCTIONING AS A SEMI-AUTONOMOUS UNIT WITHIN THE SCHOOL SYSTEM, MSD HAS AS ITS BASIC OBJECTIVES IMPROVING EDUCATIONAL QUALITY, SERVING THE SPECIAL EDUCATIONAL NEEDS OF THE COMMUNITY, STIMULATING SCHOOL-COMMUNITY INVOLVEMENT, AND INITIATING ADMINISTRATIVE INNOVATIONS. ONE OF ITS SPECIAL GOALS HAS BEEN THE DEVELOPMENT OF NEW PROGRAMS TO IMPROVE THE LEARNING POTENTIAL OF A TARGET POPULATION OF SOME 16,500 DISADVANTAGED STUDENTS. PROGRAMMATIC INNOVATIONS INCLUDE STAFF DEVELOPMENT, CURRICULUM IMPROVEMENTS, NEW CLASSROOM ORGANIZATION, AND CULTURAL ENRICHMENT. OTHER MSD PROGRAMS HAVE BEEN IN THE AREAS OF TRAINING COLLEGE GRADUATES FOR URBAN TEACHING, EVOLVING A CORPS OF "PARAPROFESSIONALS" TO BE ASSISTANTS AND AIDES, OPENING FIVE PRESCHOOL CENTERS, AND DEVELOPING THE MSD UNITS INTO "COMMUNITY SCHOOLS." THREE NEW PROGRAMS WHICH ARE PLANNED ARE A COOPERATIVE COLLEGE-SCHOOL PROJECT, A RESIDENTIAL JUNIOR HIGH SCHOOL, AND A HIGH SCHOOL COURSE IN DATA PROCESSING. EVALUATIONS OF MSD HAVE BEEN CONDUCTED BY INDEPENDENT INSTITUTIONS AND BY THE DIVISION ITSELF. THE MAJOR DIFFICULTY FACED BY MSD IS THE CONSTANT UNCERTAINTY ABOUT FUNDING AND OTHER SUPPORT FROM THE BOARD OF EDUCATION. (NH)