This program, funded by the State of Michigan, was designed to provide compensatory education in basic reading and arithmetic skills for elementary school children with serious deficiencies in these areas. The composite achievement scores of the 1970-71 Michigan Educational Assessment Program were used to establish eligible school districts. Minimum performance objectives of at least one month's gain in achievement for each month of instruction as measured by approved pre- and posttest instruments were established for each student in the program. In order for each school district to receive the full allocation per pupil of $200, each student must achieve 75 percent of the specified objectives. Funds were allocated to those districts with the highest concentration of students achieving at the 15th percentile or below--112,500 children in 740 schools in 67 districts--and were used for payment of salaries for qualified teachers, aides, counselors, social workers, for educational materials and equipment, and for special training for teachers and other staff members. The program's objectives of increasing basic skills in reading and arithmetic were realized such that a lareg percentage of students who previously had performed below average can perform at an average or above average pace when programs are designed to meet their needs. (ST)