An evaluation design for the San Jose Unified School District compensatory education program is presented in this memorandum. Implementation of the design is intended to determine the effects of the compensatory components and of family and cultural background on the achievement gains and attitude changes of students, thus providing a firmer basis for making decisions about the extent of compensatory education services necessary for disadvantaged Mexican Americans to achieve academic gains comparable to those of nondisadvantaged populations. The impact of economic changes on the community's large Mexican American population and implications of these changes for education are also discussed. Appendices include most of the instruments to be used in the evaluation. (JH)