The Oregon State Disadvantaged Child Project provided compensatory education for students residing in the Portland core area. A total of 6,526 students were transported to schools outside the core area where they received instruction in basic skills along with 202 students at the receiving schools. About 500 additional students, mainly residents of the core area, participated in three special projects within the program: one alternative education project with emphasis on basic skills, and two preschool programs primarily for low income children. This report evaluates the results of those programs, based on data obtained from the district-wide testing program for grades three to eight. In general, achievement gains of students in the State Disadvantaged Child Project were smaller than those of other students with whom they were compared. This has been the general result for the past six years, especially for receiving school students in grades six to eight. The report is divided into the following five sections: (1) description of programs; (2) achievement results for program participants; (3) program budget; (4) summary and comments; and (5) appendices with information on the Albina Youth Opportunity School alternative education project for dropouts. (PS)