Many New Yorkers have given up on the public schools and on the chance for reform. However, the school system's new chancellor, Frank Macchiarola, seems to have both the necessary commitment to change and the administrative skills. Interim evaluations have been made of his performance, with the following results: (1) Staff Performance--good work on appointments, strong initiatives in denying tenure to supervisors, has yet to develop a plan for dealing with inadequate teachers; (2) Management and Accountability--started revamping central bureaus, revitalized direct services in high schools and in special education, has yet to improve current decentralized structure; (3) Priority Budgeting--shifted funds from educational administration to direct services for children; (4) Use of Non-Budget Resources--needs improvement, but has opened schools after regular instruction hours for community use; (5) Collective Bargaining--avoided teachers strike, but failed to confront key issues, took tough stand on negotiations with school bus drivers, but failed to develop strong public support; (6) Emphasis on Academic Achievement--has spoken of the need to ensure that all children learn and has taken first steps by establishing transitional classes for students held back a grade. Overall, although much remains to be done, Mr. Macchiarola's performance has been creditable in an extremely difficult situation. (Author/RLV)