This report describes a "third wave" of educational reform that focuses on improving academic achievement and preventing dropping out among disadvantaged children. It contains eight sections. The Executive Summary surveys the dimensions of the at-risk situation and strategies to confront it. "The Scope of the Problem" provides background on the issue and describes what is at stake for society as a whole. "Who Are Youth at Risk?" defines the problem in terms of poverty, transience and homelessness, and single-parent families. This section also describes demographic changes and discusses the following problems related to at-risk students: (1) dropping out; (2) low academic achievement; (3) teenage parents; (4) emotional-physical health and related problems; (5) substance abuse; (6) youth unemployment; and (7) juvenile crime. "Research Related to Children at Risk" suggests the importance of parent involvement and early education. "Major Policy Statements" summarizes several papers issued recently by national organizations. In "Schools and the States Respond" the following responses to the problem are described: (1) school action; (2) local solutions; (3) state action; (4) a state action blueprint; and (5) results of a governors' report. In "Policy Implications for School Boards" the need for school restructuring is identified and 10 policy suggestions from experts on students at risk are highlighted. The final section is "A Call to Action." The report concludes with the following appendices: (1) descriptions of effective school programs; (2) descriptions of state programs; (3) an assessment instrument; and (4) a selected bibliography. Statistical data are presented on eight tables. (AF)