Use of the Public Law 94-142 Set-Aside Shows Both the Flexibility Intended by the Law and the Need for Improved Reporting

Gao ID: PEMD-85-5 January 2, 1985

Pursuant to a congressional request, GAO examined how states are currently using funds set aside under P.L. 94-142, the Education for All Handicapped Children Act of 1975, and analyzed the likely effect of a shift in the current set-aside proportion.

GAO found that most states have allocated the set-aside in a manner that meets the federal mandates and responds to state needs. However, GAO believes that the current process might be modified in several ways: (1) although most states do not use their full set-aside allotment, the proposed legislative reduction of funds might have a negative effect on the states that need their allotment; (2) more specific guidance is needed for states if financial support is forthcoming for activities, such as research and development, child programs, and infant programs; and (3) the argument for allowing small states the flexibility of allocating a larger percentage of funds should be considered. Although the set-aside seems to be effectively reaching the act's goals, better financial information on the program is needed. GAO believes that collecting and reporting this information would not add greatly to the states' or the Department of Education's data collection and reporting burden.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Lois-Ellin Datta Team: General Accounting Office: Program Evaluation and Methodology Division Phone: (202) 275-1370


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