Valid indicators for a school district's Chapter 1 program that would help districts make decisions and shape policy are defined and explored. The March 1988 report of the School District of Philadelphia's Chapter 1 task force proposed a 2-year phase-in of a totally restructured Chapter 1 program for the Philadelphia schools. The definition of indicators of the National Center for Educational Statistics was used to select the following indicators: (1) pupil stability indicator; (2) age-grade appropriate indicator; (3) exit/return rate indicator; (4) percentage of success indicator, which examines norm referenced impact grade by grade; and (5) standardized curriculum support indicator, an analysis of scores from curriculum-referenced items on the city-wide tests. These indicators were developed to inform both school-based and district-wide discussion and decision making. Standardized curriculum support, percentage of success, and exit/return indicators have clear messages about student outcomes, while the other indicators describe the area in which learning takes place rather than the actual outcomes. It is not yet clear if pupil stability and age-grade appropriate indicators have predictive value. Indicators can be beneficial to a school system if data are focused on program improvement and the risks associated with undesirable numeric values are minimized. Seven tables present study data, and five bar graphs illustrate the indicators. (SLD)