As the school-age population in the United States becomes increasingly culturally diverse and economically heterogeneous, public schools are confronted with issues of program specialization and social integration. Programs designed for students with special needs often take the form of discrete instructional structures. One consequence of targeted or categorical services is organizational fragmentation in school administration and classroom instruction. This book examines issues of program integration and fragmentation in the implementation of major categorical programs. Following the preface, section 1 contains two chapters on the development of categorical programs: (1) "A Brief History of Categorical School Programs, 1945-1993" (Maynard C. Reynolds), and (2) "The Changing Politics of Federal Educational Policy and Resource Allocation" (Kenneth K. Wong). Section 2 contains five chapters on program implementation and classroom effectiveness: (3) "Educational Experiences and Needs of Middle School Students in Poverty" (Samuel S. Peng and Ralph M. Lee); (4) "Program Design and Assessment Strategies in Chapter 1" (Thomas Timer); (5) "Compensatory Education in South Carolina: Lessons from the Past, Visions for the Future" (Lorin W. Anderson and Leonard O. Pellicer); (6) "Programs for Children with Limited English Proficiency: An Assessment of Present Practices" (Aquiles Iglesias); and (7) "What Works and What Doesn't Work: The Case for an Inclusive System" (Margaret C. Wang, Maynard C. Reynolds, and Herbert J. Walberg). The third section explores the future of categorical programs. Chapters are: (8) "From the Pickett Fence to the Chain Link Fence: National Goals and Federal Aid to the Disadvantaged" (Martin E. Orland); (9) "School-Linked Services and Chapter 1: A New Approach to Improving Outcomes for Children" (Michael W. Kirst, Julia E. Koppich, and Carolyn Kelley); and (10) "Looking Ahead: Integrating Urban Policies to Meet Educational Demands" (Lisbeth B. Schorr). One figure and 21 tables are included. Each chapter contains references. (LMI)