The guide is designed as a tool that can be used to write a proposal for funding from Public Law (PL) 89-313 (which amended the Elementary and Secondary Education Act of 1965). Grant awards under PL 89-313 are available to eligible State-operated and State-supported agencies serving handicapped children. After an overall needs assessment, the model was developed in 1977 by the Technical Assistance Project (TAP) of the University of South Dakota. The model has been revised periodically to reflect new regulations and to add or clarify components as necessary. The model, which provides a step-by-step guide for preparing each section of the proposal, can be used to learn proposal writing. The following topics are covered in separate chapters preparation (determination of eligibility for PL 89-313, state education agency responsibilities, abstract, budget, project narrative); submission and evaluation (schedule, evaluation procedures); and operation (role of project director, time extensions, reporting procedures, project monitoring and evaluation). Among the extensive appendixes are a checklist for project proposals, a handbook on child centered objectives, a project budget form, a self-review form, and federal regulations for State-operated programs for handicapped children, as well as materials useful for needs assessment and evaluation design. (CL)