INDIANAPOLIS (AP) — Most Indiana school districts will receive state grants to pay for full-day kindergarten in the upcoming school year — money that will help even if it does not cover all the costs.

A total of 263 corporations and charter schools applied for the state grants totaling about $665 per student, according to the Indiana Department of Education. The state has 293 school districts.

"Though we cannot be satisfied until kindergarten students across Indiana are afforded the opportunity to attend a quality full-day program, this year marks a bold step in that direction," said Suellen Reed, the state's superintendent for public instruction.

The Indiana General Assembly passed a budget this year that directs $33.5 million to full-day kindergarten grants in the 2007-2008 school year and another $58.5 million for 2008-2009. The cash will come in handy for many districts that have been paying out-of-pocket for full-day kindergarten programs.

Indianapolis Public Schools, for example, used $5.5 million from federal grants and its own general fund last year to provide full-day classes for the district's 3,000 kindergartners. This year, the state grants could bring IPS nearly $2 million to help pay the tab for full-day, which is one of the district's priorities.

"Because we have so many of our families who live in poverty, many of our children start school so far behind their more affluent peers," said Kim Hooper, district spokeswoman. "We find that it makes more sense for our kindergarten teachers to work with kindergartners for six hours a day. It helps them get caught up."

Because the grants do not cover the total cost for full-day programs, schools and districts can continue to ask parents to pay fees for the classes.

Some schools have been concerned about finding space for full-day kindergarten. About 53 percent of school districts said they would need more classrooms to implement the program, according to a survey conducted last year by the Indiana Department of Education.

But some districts are finding creative ways to hold the classes in already crowded schools. Fort Wayne Community Schools added outdoor modular units at one school and reorganized classrooms at others to accommodate full-day kindergarten. The district is expanding full-day programs from 13 elementary schools to all 33 schools starting this fall.

"Space has been an issue, but we're committed to making this happen," said Kathy Friend, the district's chief financial officer.

The Department of Education will determine the exact amounts of the grants in October, after official enrollment counts have been tallied across the state. Districts that did not apply for the grants this year can next year, but those who get one must follow certain rules.

Full-day programs must offer at least five hours of instructional time each day and meet academic requirements. Teachers are also required to monitor students' literacy progress throughout the year.