This handbook provides FY (fiscal year) 2000 guidelines developed by the Library of Michigan for applying for LSTA (Library Services and Technology Act) subgrant funding. The handbook includes the following sections: (1) overview of the LSTA subgrant program; (2) general application guidelines for all funding areas; (3) required elements of the grant application, including funding area, project administration, abstract, narrative, project objective(s), project activities, objective budget, summary budget, timeline, evaluation, participating agencies and service populations, and board resolution statement of assurances; (4) budget category definitions for communications, library materials and supplies, professional services and costs, promotion and outreach, technology, training, and miscellaneous; (5) review of the proposal; (6) the award process; (7) reimbursement policies and procedures, including eligible costs, ineligible costs, reimbursement documentation, and ownership of federally funded equipment; (8) project revisions; (9) copyrights; (10) property and services procurement; (11) reports, including interim and final reports; (12) provision of information; (13) single audit requirements and costs; and (14) records retention. Descriptions of the following grant funding areas are attached: basic library technology; community information network; Internet training center; advanced technology research and demonstration; improving library and information services to persons having difficulty using a library; improving library and information services to the underserved; libraries for the blind and physically handicapped; and regions of cooperation. (MES)