In 1968, Michigan began a special program of state-aid grants to local school districts for the education of disadvantaged children. Provisions of the original Michigan statute were rather vague, and the State department of education was given considerable discretion in implementing and administering the program. Many of the rules developed by the State were quite innovative, such as an accountability provision first proposed in 1971. However, political pressures forced constant revision of the administrative rules and procedures developed by the State so that the compensatory education program underwent a gradual metamorphosis. In practice, administration of the program was negotiated between the State department of education and local school districts, and administrative decisions invariably reflected the compromise between State and local interests. As a result, many of the department's more innovative policies, including the controversial accountability provision, were never actually put into practice. (Author/JG)