A primary purpose for reducing the student-teacher ratio in the early grades is to make students more successful in their later years. This document contains two separate, but interrelated reports that examined two aspects of the 1989 Class Size Reduction (CSR) Act in Nevada. The Act called for a reduction in student-teacher ratios for selected kindergarten classes and for grades 1-3. The two studies evaluated the outcomes of CSR in all 17 Nevada school districts. The first study, which examined changes in Comprehensive Test of Basic Skills (CTBS) scores, concluded that the act was successful in reducing the student-teacher ratio within Nevada's second-grade classrooms. Team teaching helped to reduce the ratio for approximately 34 percent of the state's second-grade students. The effect of lower ratios, however, was mixed. Short-term success was reflected in higher reading and mathematics scores. However, special education status, English-Second-Language status, ethnicity, free-lunch eligibility, and class configuration were more important factors than class size in predicting a student's CTBS score. Although a portion of the differences between student scores were explained by class size and student characteristics, approximately 90 percent of the differences were unexplained by the data. Recommendations include: (1) Fully fund the CSR program for the grades it covers; (2) fund programs that target preschools and early intervention programs for special populations; (3) fully fund a comprehensive evaluation of the program; (4) develop a longitudinal evaluation design that relies on existing state-mandated testing; and (5) provide funding to include teacher and staff development. The second study surveyed all Nevada elementary school principals, all first- and second-grade teachers, and parents of students in CSR classrooms. The surveys elicited generally favorable responses toward CSR. (Contains 29 references, 56 tables, and 6 figures.) (LMI)