The Rural Education Improvement Project of the Southern Association of Colleges and Schools presents its second annual report relative to a 5-year rural education improvement program funded by the Noyes Foundation and the Danforth Foundation. The purposes of the program are reported as (1) the identification of effective means of interrupting the deficit cycle of the rural disadvantaged pupil, (2) the demonstration of the child-family-community-school interrelationship, and (3) the importance of blending research findings of college and university personnel with know-how of elementary and secondary educators. Results of the project are examined for each of the 3 rural education centers (1 in Tennessee, 1 in Florida, and 1 in Georgia) involved in the program, and a master financial report is presented. (BD)