The Reading Recovery (RR) program of the San Diego City Schools (California) has expanded over the last 5 years and now includes 38 schools. This report documents the program's short-term and sustained efforts to increase reading achievement and its central office costs. RR is a Title I-funded early intervention program that uses one-on-one tutoring to improve the reading skills of students experiencing serious difficulties in the first grade. These students are identified and selected on the basis of their performance on a program-developed assessment. Implementation of the district's RR program has been difficult because the RR program model is designed to serve the lowest 20% of first graders, but the district's implementation has been limited to the lowest 8 students at almost every school, resulting in serving about 25 to 33%. Beginning in 1994-95, access to RR was reduced to the most needy students in the lowest 20%. A Spanish-language version of RR was also implemented. The short-term treatment effects of RR were determined by comparing the percentage of "discontinued" (reached grade level in reading) with those who were not discontinued and by analyzing the participants' English language performance in the second grade and above. The percentage of discontinued students varied from year to year, but discontinued students (except for 1994-95) showed sustained academic benefit from RR. Approximately 55% of African American, Hispanic, and White students were discontinued, and the success rate was almost identical for the three ethnicities. Costs were highest for 1994-95, due to program expansion, and recommendations are made for continued RR funding. (Contains 9 figures and 20 tables.) (SLD)