The report outlines efforts to meet federal and South Dakota state law requirements in serving handicapped children under 6 years of age. A plan is outlined to coordinate interagency efforts for this population. Activities are listed for three major goals (sample objectives in parentheses): to develop a comprehensive interagency plan for this population (organization of an interagency council, development and field test of a draft plan); to encourage interagency coordination at the local level (identification of parents and early childhood/special education personnel interested in forming an early childhood consortium); and to coordinate activities of the proposal with those of the Preschool Incentive Grant (communication with local education agencies). A management plan addresses personnel, timelines, and budget for objectives and activities. Procedures for a third party evaluation of the project are described. (CL)