Focusing on the high school dropout problem in Austin, Texas, this report presents statistics on dropouts, describes characteristics of dropouts, examines reasons for and consequences of dropping out, and explores how to prevent this problem. The report indicates that: (1) Hispanics drop out at higher rates than Blacks or Whites; (2) males drop out more often than females; (3) dropouts tend to have low grades, dislike school, come from low income families, and receive little parental support for staying in school; (4) reasons for dropping out include academic failure, non-school interests, economic need, health problems, and conflicts with school personnel; and (5) the unemployment rate of dropouts is double that of graduates. It is suggested that reducing the dropout rate in Austin requires districtwide commitment and a coordinated approach that addresses the problem at all grade levels. It is further suggested that to be effective, dropout prevention programs must (1) ensure that all students will develop a minimum of basic academic skills, (2) include components that will enable students to meet their economic needs, (3) provide attractive activities, (4) focus on improving achievement, especially among disadvantaged students, and (5) be based on clear plans of action. The report includes case descriptions of some high school dropouts. (MJL)