This compilation presents narratives describing Chapter 1 program improvement and innovation efforts across the nation at state and local levels. The survey responses summarized in this report were submitted by State Coordinators of Compensatory Education. Responses were received from 48 states, Puerto Rico, and the District of Columbia. The United States is now in the second school year of full implementation of the Hawkins Stafford Amendments of 1988. In 1989-90, states and localities had identified 6,300 schools (nearly 12 percent of Chapter 1 schools) as needing improvement. Preliminary data for 1990-91 suggest that close to 9,000 schools may be developing or implementing program improvements. A critical concern has been how to implement improvements with limited funds. Chapter 1 schools are also benefiting from innovation stimulated through Chapter 1 improvement. Narrative summaries for 26 states discuss program improvement and innovation. Such details as the number of schools involved, proportional expenditures, and staff and school objectives are included. Many narratives highlight improvement and innovation in particular cities or school districts. (SLD)