These guidelines, funded under provisions of Title I of the Elementary and Secondary Education Act, have been prepared to assist school districts develop projects that will effectively achieve the objectives of the federal and state laws which relate to compensatory education. The appropriation for California under Title I is allocated to districts on the basis of the number of children from low-income families residing in each district. The project method is used in distributing the funds. The school district submits a project application to the state agency, indicating the proposed program for utilizing a certain sum of money to supplement the regular school program. The Education Code provides that the State Board of Education shall be the approving power for projects submitted by the school districts. The Equal Educational Opportunities Commission serves as the advisory board to the Board on matters relating to the coordination and implementation of effective compensatory education programs. The staff of the Division of Compensatory Education assists in designating target areas, selecting pupils, planning and developing curriculum to provide comprehensive compensatory education programs that will raise the achievement levels of disadvantaged pupils, developing programs for staff development, and evaluating the success of individual school programs and of the entire project. The approval process requires in-depth analysis of the entire project, including fiscal management, program development and implementation, evaluation, and community involvement. (Author/JM)