Presented is a report of a joint study project of an aerospace company and California's Office of Compensatory Education. The project's goals were to (1) explore the impact of facets of compensatory education on some neighborhood problems; (2) offer a communication link between school personnel and the Office of Compensatory Education; (3) use a systems analysis approach to determine program priorities; and (4) establish baseline data for correlating the compensatory education program with neighborhood stability factors. The document contains sections and techniques and methodology, findings, and conclusions. A summary is provided and exhibits are included. (NH)