Chapter 1, the program established to help disadvantaged school-age children catch up with their peers, is costing American taxpayers $7 billion a year and providing inadequate, inefficient services to 5 million children. Since it was created in 1965, Chapter 1 has spent $135 billion (in constant 1992-93 dollars). Yet achievement by those covered has deteriorated, not improved.

• The achievement level of Chapter 1 students has fallen for all groups tested except seventh-grade reading.

• From the third grade to the fourth grade, the achievement level of the average Chapter 1 student fell from 26th percentile to the 23rd percentile in reading.

• In math, scores dropped from the 27th percentile to the 24th.

The most glaring problem with Chapter 1 is that the allocation of money is based on failure, not success. A school district receives money based on the number of educationally disadvantaged children in the district. If test scores rise slightly, the children may no longer be counted as educationally disadvantged and the school will lose program money.

The program has other serious failings.

• 74 percent of the elementary schools pull children out of regular basic classes for at least part of the Chapter 1 instruction, causing them to miss basic work while they are supposed to be catching up.

• Much of the information taught during pull out sessions is taught by aides with only a high school diploma.

• Chapter 1 children generally are taught low-level skills and schools have low expectations of them.

• Children with learning disabilities and dyslexic children - both of whom need different services - must also be included in Chapter 1 programs.

Source: Brian Jendryka, "Failing Grade for Federal Aid: Is It Times to Close the Book on Chapter 1?" Policy Review, No. 66, Fall 1993, Heritage Foundation, 214 Massachusetts Avenue, NE, Washington, DC 20002, (202) 546-4400