A school board's proposal to require secondary school students to repeat all required courses in which they received grades of D or F would probably result in significant, unintended increases in enrollment, overcrowding of facilities, and a need to hire many additional staff members. Analysis of the district's current procedures, which deny graduation credit for grades below C in required courses, revealed that 24 percent of the grades awarded in the schools concerned fell into the unacceptable category. Requiring students to repeat these courses would increase the anticipated seventh-grade course enrollment demand by approximately 22 percent in the first year, and add another 7 percent in the second year. These enrollment increases would pass on to the higher grades as the years progressed, without lessening the pressures on lower grades. Over six years the course enrollment demand in secondary schools would increase by approximately 30 percent, an enrollment increase that could incapacitate the system. Secondary effects of the policy might include grade inflation to alleviate the problems posed by grade retention, changes in student morale and behavior, increases in cost, and needs for additional policy development to accommodate these effects. This report concludes with recommendations against the proposal and in favor of considering less stringent measures. Detailed tables supporting the analysis are appended. (PGD)