This evaluation of compensatory education programs in the Philadelphia (Pennsylvania) Public Schools, funded under Chapter 1 of the Education Consolidation and Improvement Act of 1981, uses an indicator-based multiple-year approach to chart changes between 1985-86 and 1988-89. An educational indicator is a number that provides useful information concerning the characteristics and vitality of an educational system. Indicators were developed to measure services, student participation, and student achievement gains, and to compare the achievement gains of Chapter 1 participants with those of regular students. The following findings are included: (1) variations in the number of services provided varied slightly from year to year, based on system enrollment and program reorganization; (2) most participants were likely to receive consistent service across the school year; (3) gains in mathematics achievement exceeded gains in reading achievement; (4) achievement gains in the lower grades tended to be better than achievement gains in the upper grades; and (5) the "achievement gap" between Chapter 1 participants and regular students appears to increase with age. Statistical data are presented in 2 tables and 17 graphs. (FMW)