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In 1990, the U.S. Department of Education (ED) launched a 5-year study of the outcomes of local prevention-education programs funded under the Drug-Free Schools and Communities Act (DFSCA). This second biennial report summarizes the results of the 1989-91 biennial performance reports completed by governors' DFSCA programs and state education agencies (SEAs). In 1992 ED provided each state and territory with two reporting forms, one for programs funded through SEAs and another for programs funded through Governors' offices. Findings show that evaluation efforts on the part of states and localities have progressed since the initial implementation period. However, substantial numbers of governors' state-level programs, governors' award recipients, SEAs, and local education agencies continue to have limited or no evaluation activities, especially those that evaluate the impact of prevention programs on the lives of students and youth. The results raise new questions, in particular: What types of activities (other than prevalence surveys) are being used by states and localities to assess program effectiveness, and what are the results of the evaluations? Thirty-five exhibits are included. Appendices includes a list of states that submitted 1989-91 performance reports, a copy of the Governors' Program Biennial Performance Report Form, a copy of SEA and LEA report forms, a compilation of responses from governors' programs, and a compilation of responses from SEAs and LEAs. (LMI)