Compensatory Education:

Most Chapter 1 Funds in Eight Districts Used for Classroom Services

HRD-92-136FS: Published: Sep 30, 1992. Publicly Released: Sep 30, 1992.

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Pursuant to a congressional request, GAO provided information on how school districts used Chapter 1 compensatory education grant funds for educationally disadvantaged students.

GAO found that: (1) in fiscal year 1991, Chapter 1 funds for states and districts totalled about $5.5 billion; (2) analysis of Chapter 1 expenditure data from 8 school districts indicated that the districts expended about 75 percent of Chapter 1 funds for such classroom services as teacher and teacher assistant salaries and benefits and classroom supplies and equipment; (3) the percentage of Chapter 1 spending for classroom services ranged from 65 percent to 90 percent among the districts; (4) neither the law nor Chapter 1 regulations specify the percentage of funds that districts should spend for classroom services; and (5) the 8 districts spent an average of 62 percent of their total district funds, excluding Chapter 1 funds, for direct classroom services.

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