Presented is the continuation proposal for Title III funding of a program which serves approximately 2,000 kindergarten and first grade children by early identification of learning needs and diagnostic-prescriptive intervention. Program components are given to include comprehensive screening to identify individual needs in the areas of motor development, auditory perception, visual perception, and language development; prescriptive teaching; and inservice training sessions for staff. Provided are statistical data in the areas of general information, the budget summary, project participation, personnel, and persons served by program components. Discussed in the narrative section are project development, the program model, the screening procedure, individualized instruction, and evaluation findings including increased use by teachers of diagnostic-prescriptive techniques and improved performance by students on the Metropolitan Readiness Test. Given in chart form are six program goals with related performance and process objectives. Also provided is a list of program participant functions, calendar of events, and a summary of staffing plans. Appended are a class analysis chart, the screening device, and a listing of suggested parent-child activities. (DB)