This guide outlines strategies to be used by rural school districts when applying for grants in New York State. The first section addresses the impact of recent federal program reductions and restructuring that have significantly reduced overall federal spending on state education programs. Both federal and state governments are moving away from expensive and inefficient categorical programs to block granting. Block granting reduces overall funding by combining multiple funding sources and placing limits on administrative expenditures. The second section describes successful strategies identified by rural school districts when applying for competitive funding through the New York State Education Department. Strategies are discussed for the following steps: (1) locating funding sources; (2) developing an application that matches funding sources with school district priorities and using a cross-disciplinary team to shape and test out ideas; (3) incorporating themes within the proposal to organize and tie together the application; and (4) tailoring grant applications to grantee expectations by following the point scale, including anticipated program outcomes, demonstrating collaboration and commitment, and speaking with one voice. The third section lists 47 state and federal education programs in New York that have grant monies available for programs such as workforce preparation, day care start-up, at-risk youth, community schools program, family literacy programs, parent education, and rural education research. Each listing includes the administering agency, objectives, and contact person. The last section provides background information on the New York State Legislative Commission on Rural Resources and the Rural Education Advisory Committee. (LP)