Submitted to the State Board of Education by the State Coordinator of American Indian Education and approved by the State Indian Education Advisory Council, this report validates the existing educational needs of Michigan's Native population and presents pertinent data with a suggested guideline for the Board to act on. The paper's purpose is to: (1) provide background information on the educational needs of Michigan's Native youth and (2) inform the staff and the Board about recent Federal legislation affecting the education of Native people. The information pertains to: present educational programs; Johnson-O'Malley (JOM) programs; Title IV of the Indian Education Act; operational revenues and comments of five JOM School Districts; the Elementary and Secondary Education Act Title I for fiscal year 1973-74; the key to solving the high dropout rate of Indian youth; means to motivate and maintain the Native youth in the public schools; and the State Department of Education's position on Indian self-determination. The recommendations pertain to Indian cultural studies, legislation, action policy, Title IV of the Indian Education Act, college programs, Indian enrollment in public schools, and the budget for Indian education. Additional staff information on the recommendations as approved by the State Board of Education is appended. (NQ)