The revisions in this document address how state education agencies (SEAs) allocate Title I, Part A funds to local education agencies (LEAs) for school year 1997-98. The changes reflect requirements in the Title I statute and regulations published in the "Federal Register" on July 3, 1995, that take effect for the first time in 1997-98. Guidance concerning how a LEA allocates funds to school attendance areas within the school district is unchanged from that issued earlier by the U.S. Department of Education. This document outlines specific steps in the allocation process and provides examples that illustrate how certain procedures may be carried out. The document contains illustrative but not necessarily exclusive guidance regarding Title I allocation requirements. Answers to 34 commonly asked questions are included. (LMI)