The handbook is designed for use when requesting State or Federal vocational education funds for projects concerning research and development, teacher education, education professional development, exemplary programs, dissemination-diffusion programs, vocational guidance, planning, data collection and utilization, evaluation, and curriculum development. It presents guidelines for the following areas: writing and submitting the prospectus, steps for designing a proposal, information on the procedures for review and funding, and requirements for project recipients. It also contains information necessary to meet the Kentucky Vocational Education and the U.S. Office of Education requirements in the writing of progress and final reports once the proposal is funded. Appended materials include sample cover pages, budget form, assignment of rights, agreement of evaluation and records maintenance, and agreement of nondiscrimination. (Author/EC)