This handbook provides FY (fiscal year) 2002 guidelines developed by the Library of Michigan for applying for LSTA (Library Services and Technology Act) funding. The first section provides an overview of the LSTA program. The second section gives the grant timeline for FY 2002. The third section outlines general application guidelines for all funding areas. The fourth section describes the application review and award process. The fifth section covers the following required elements of the grant application: (1) identification; (2) project administration; (3) abstract; (4) federal LSTA goal; (5) LSTA goals for Michigan; (6) narrative, including relationship to federal LSTA goals, relationship to Michigan's 5 year state plan, project need, multi-type cooperation and resource sharing, goals and objectives, local resources, continuation and sustainability, and awareness; (7) project objective(s); (8) project activities; (9) objective budget(s); (10) summary budget; (11) timeline; (12) evaluation; (13) project partners; and (14) board resolution statement of assurances. Descriptions of the following grant funding areas are attached: library services to the underserved; technology and networking; and collaboration and partnership. Appendices include: mail and phone information; a glossary; grant proposal review score sheets; maps and directories of Michigan's public library cooperatives and regions of cooperation; a grant application checklist; poverty guidelines; and an LSTA excerpt. (MES)