In 1985-86, reading was identified as the supplemental instructional area of the Albuquerque (New Mexico) Public Schools (APS) for funding under the Education Consolidation and Improvement Act, Chapter 1. In all, 39 elementary schools, 13 middle schools, and 4 high schools in the APS qualified for Chapter 1 services; 4,317 elementary school students (ESSs) received reading instruction (RI) and/or Cognitive Language Development instruction (CLDI), and 1,524 secondary students received RI. Data from 1,012 classroom teachers and 834 parents support the test results concerning the impact of Chapter 1 RI. As shown by the Comprehensive Tests of Basic Skills, ESSs with 40 hours or more of Chapter 1 instruction gained skills at a greater rate than normal, except for grade 2. The Stanford Early School Achievement Test, Level II, showed greater than normal development of first graders with at least 30 hours of Chapter 1 CLDI. Student improvement in skill development--measured by the Stanford Diagnostic Reading Test--showed greater than normal growth in grades 6 through 12. Early Learning, computer-assisted instruction, and parent liaison services were also funded through Chapter 1. In addition to academic improvement, teachers and parents noted improvement in student attitudes and self-confidence. Fourteen data tables and three graphs are provided. Facts about eligible schools, staff allocation data, and the Chapter 1 planning form are appended. (SLD)