This report discusses the activities of the California Educational Research Cooperative (CERC) over the past year. The CERC was established in 1998 as a joint venture between the School of Education at the University of California, Riverside, the San Bernardino County Offices of Education, and 19 local school districts to bring educational professionals and research scholars together to foster collaborative research projects, teacher education, direct support for school systems, and the creation of a regional data system. The report outlines various research activities in progress in the areas of student assessment, combination classes, cultural diversity, marketing research, school-community relations, the opening of new schools, dropout prevention, school restructuring, and year-round education. Specific research projects and interventions by members of CERC are also described. The report also provides information about CERC's revenue, expenditures, publications, sponsors, members, and staff. (MDM)