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Education Finance: Extent of Federal Funding in State Education Agencies

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Report Type Reports and Testimonies
Report Date Oct. 14, 1994
Report No. HEHS-95-3
Subject
Summary:

In fiscal year 1993, although the federal government provided only about seven percent of elementary and secondary school funding, states relied on federal support for about 41 percent of the funding and 41 percent of the staff for their state education agencies. This may give the impression that the federal government was providing more than what might be considered its fair share of state education agency operating funds. However, comparisons among state education agencies solely on the basis of their total federal share of funding and staff can be misleading. The ratio of federal-to-state support of each state education agency depends on the individual combination of federal and state programs run by that particular agency. Although 10 federal programs are common to nearly all state education agencies, no two states have the same mix of federal and state programs. Some state education agencies keep funding to operate large programs, which can greatly increase the federal or state share of funding and staff. Despite the variety in the mix of programs and federal funds kept, state education agency officials GAO interviewed gave similar descriptions of the way that they use federal money and many said that federal programs had more administrative and regulatory requirements than did state programs.

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