Across the nation, more than 2.2 million children attend 2,750 rural school districts that suffer from chronic, severe poverty. The National Rural Small Schools Task Force oversees nine regional educational laboratories as they identify and develop promising educational practices for rural, small schools. One laboratory developed a data base containing size, rurality, and income data for all U.S. school districts, and per pupil expenditure and student achievement data for districts in 17 states. Analysis of the 17-state sample showed that 49% of its school districts (2,587) were both small and rural, and 28% of these (717) ranked in the bottom quarter of districts in their state on at least two of three indicators: family wealth, per pupil expenditure, and student achievement. By adding large rural districts and projecting analyses to all 50 states, this report estimates that 2,750 U.S. rural school districts are chronically poor. During the first year of the rural small schools initiative, the laboratories developed or identified 39 promising practices for improving rural schools. Generally, these practices help schools solve their own problems, help policymakers make sound decisions, and install proven ideas in schools and communities. This report contains: (1) Task Force recommendations to the laboratories for second year activities and future funding possibilities; (2) data on poor rural school districts in Arkansas, California, Connecticut, Iowa, Kentucky, Massachusetts, Mississippi, Oregon, and West Virginia; and (3) the purpose, description, key features, results, and sites of the 39 promising educational practices. (SV)