Elementary School Improvement Project Act

Elementary School Improvement Project Act - Directs the Secretary of Education to make demonstration grants to local educational agencies (LEAs) to conduct programs designed to reduce the student-to-teacher ratio in the primary grades of elementary schools.

Requires each LEA that receives such a grant to establish and maintain in schools under its jurisdiction an average student-to-teacher ratio of not more than 15 students per teacher, and a maximum ratio of not more than 18 students per teacher. Applies such ratios to: (1) the first grades of such schools for each year for which the grant is received; (2) the second grades for the second and third years of the grant; and (3) the third grades for the third year of the grant.

Sets the Federal share of the cost of activities carried out under such a grant at: (1) 90 percent for the first year; (2) 70 percent for the second year; and (3) 50 percent for the third year. Allows the non-Federal share to be in cash or in kind.

Authorizes appropriations for FY 1989 and succeeding fiscal years.