This report describes Kentucky's response to the mandate of the Stewart B. McKinney Homeless Assistance Act of 1987. The report is comprised of a preface, ten sections, and seven appendices. Section 1 presents definitions of terms used in the report. Section 2 describes Kentucky policy for an annual count of homeless children and youth. Section 3 defines residency requirements for homeless students. Section 4 is a statement of Kentucky school placement requirements. Section 5 reports State policy for special programs and services. Section 6 describes records requirements for homeless students. Section 7 describes State response to transportation requirements. Section 8 describes mechanisms for the resolution of disputes. Section 9 enumerates State Educational Agency (SEA) responsibilities. Section 10 is a description of procedures for public hearings. The following reprinted material is appended: (1) Subtitle B of the McKinney Act; (2) a special amendment to school data form for homeless students; (3) a data form for counting school-aged homeless children and youth; (4) a status report form on compliance with the McKinney Act; (5) a list of Advisory Council on the Homeless members; (6) an example of a letter of appointment to the Council; and (7) the Kentucky Coalition for the Homeless mission statement. (AF)