This policy manual is a guide for state education agencies (SEAs), local education agencies (LEAs), parents, and other interested parties wishing to obtain funding for basic compensatory education programs operated by school districts under Part A of Chapter 1 of Title I of the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988. These programs, previously contained in Chapter 1 of the Education Consolidation and Improvement Act of 1988 (ECIA), must meet the special educational needs of educationally deprived students in areas and schools with high concentrations of low-income families, and the needs of children in local institutions for neglected or delinquent children. The following areas are discussed: (1) basic grants; (2) concentration grants; (3) carryover; (4) reallocation; (5) use of funds; (6) assurances and applications; (7) the General Education Provisions Act; (8) grantbacks; (9) Education Department general administrative regulations; (10) eligible schools; (11) eligible children; (12) schoolwide projects; (13) parental involvement; (14) services for private school children; (15) fiscal requirements; (16) evaluation; (17) program improvement; (18) state administration; and (19) assignment of personnel. An index is included. The following materials are appended: (1) Public Law 100-297; (2) Chapter 1 regulations; (3) the General Education Provisions Act; and (4) the Education Department General Administrative Regulations. (FMW)