An estimated one million students drop out of school each year; this is but one indicator of the failure of schools to provide equal educational opportunity for all children. One main reason is the failure to take into account the diverse backgrounds of the students. In particular, schools have been structured in a manner that discriminates against children whose parents are poor. If the school system is to survive, it must be sensitive to change and capable not only of making appropriate responses but of anticipating problem situations and coping with them prior to a confrontation. In California, the approach to this has been compensatory education--education geared to the individual needs and potential of each student. Concentration of educational resources on schools with a high percentage of economically disadvantaged children has resulted in improved achievement, attitudes, and motivation. The lack of societal commitment has resulted in the limiting of the number of participants in order to have some effective program. The role of the teacher is crucial to the success of such programs. (JM)