This report discusses the situation--a 43 percent attrition rate in public schools--leading to the formation of the Dropout Prevention and Recovery (DPR) program, implemented in the Los Angeles Unified School District in January 1985, and describes activities undertaken as part of the pilot program. The main body of the report, presented in question and answer form, addresses the following issues: needs assessment and identification of target audience; extent of the dropout problem; resources available to implement a dropout program; program objectives; demographic characteristics of the community being served; program elements; financial and programatic collaboration and administrative and outreach strategies; evaluation strategies; and plans for the program's institutionalization. The remainder of the report consists of a series of attachments, the first of which describes in greater detail the 1985-86 program, which represents the beginning of a long-term effort involving schools, community agencies, business and industry. The program's design, targeted schools, and the data collection system are discussed here. Attachment 3 outlines selection criteria of the 24 elementary, junior high and high schools in which the program was piloted, briefly describes staffing, funding, public/private collaboration and evaluation, and provides a description of the program at the Bethone Junior High School. The other two attachments consist of a list of pilot schools and their financial allocations and a profile of the Achievement Council, a statewide public interest organization aimed at increasing academic achievement among minority and low income students in California schools and colleges. (GC)