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HRD-85-18 1 (1984-11-19)

handle is hein.gao/gaobabevm0001 and id is 1 raw text is: '- F ICOMPTROLLER GENERAL Report To The Congress OF -H UNITED STATES Education Block Grant Alters State Role And Provides Greater Local Discretion The Omnibus Budget Reconciliation Act of 1981 consolidated numerous federal programs into the education block grant and Shifted primary administrative responsibility to states. States have to dCevelop a formula to distribute 80 percent of their block grant funds o local education agencies, which have virtually complete discretion in deciding the use of funds. While states do not control the vast majority of funds, they have wide latitude in using the remaining 20 percent. Enrollment was a key factor for distributing funds to local agencies, but the formulas developed by the 13 states GAO visited varied greatly. Local education agencies spent over half of their school year 1982-83 funds on instructional materials and equipment. Of those funds retained by the states, over 55 percent were reportedly used for education improvement and support services--essentially the same areas that were supported by the prior categorical programs. States made limited changes to organizational structures and procedures for managing the block grant. Overall, local education officials viewed the block grant as a more desirable way of funding education programs, while most interest groups that provided GAO information viewed it as less desirable. State officials were divided concerning the desirability of the block grant concept over the categorical approach. ) 1Z ';ll/JIII ll/I ~Jl II/ 125619 GAO/HRD-85-18 NOVEMBER 19, 1984 0305V

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