The Use of Federal Education Funds for Administrative Costs.

Overview & Synopsis

This report provides information on the uses of federal education funds for administration, instruction, and other purposes, as required under Section 14204(a) of the Elementary and Secondary Education Act (ESEA), by examining alternate definitions of administrative spending, analyzing available data collected by the U.S. Department of Education and other sources, and reviewing other studies of administrative spending. The key issues examined include: "How is administrative spending defined in various reports, data collections, and federal education laws or guidance?"; "What issues should be considered in developing a definition for administrative costs in federal education programs?"; "What percentage of federal education funds are spent for administration, instruction, and other purposes at the state, district, and school levels?"; "What percentage of federal education funds reach school districts, schools, and classrooms?"; "What other agencies receive federal education funds and why?"; "How do the uses of federal education funds compare to the uses of state and local funds?"; and "How do states, districts, and schools spend administrative and other noninstructional funds?" The report utilizes data, drawn primarily from the 1995-96 school year, on allocations and expenditures for a number of major federal education programs that provide support for elementary and secondary education. (RJM)