This report examines the effectiveness of Title I of the Elementary and Secondary Education Act in meeting the special needs of underachieving students and describes the probable consequences of proposed cuts in Title I aid in seventeen southern States and Puerto Rico. A general description of Title I and the Federal role in educating the disadvantaged is followed by a discussion of Title I program effectiveness in the South. Title I is said to have been extremely successful in raising achievement levels of disadvantaged children. In addition, it is emphasized that public officials have favorable impressions of the program and that proposed budget cuts will result in fewer children being served, decreased staffing and quality of services, and increased social problems due to educational failure. Appendices include a resolution adopted by the Southern Governors' Association to oppose further cuts in Title I programs, and statistical data on Title I appropriations, expenditures, and financial consequences of budget cuts. (Author/MJL)