Examination of the United States Department of Education's administration of staff and funds for the implementation of Chapter 1 of the Education Consolidation and Improvement Act from fiscal year (FY) 1981 to FY 1986 revealed the following information: (1) the number of staff assigned to administer the Chapter 1 program declined dramatically, as did expenditures for federal salaries and expenses and personnel ceilings for the program; (2) program monitoring and federally-provided technical assistance were the two administrative functions that underwent the greatest change within the Compensatory Education Programs (CEP) office as a result of staff reductions and new approaches to program management; (3) the reductions in staff and the shifts in functions performed were heavily concentrated in the period from FY 1982 through FY 1984, a time of considerable turmoil in the CEP unit responsible for daily administration of the program; and (4) the question of whether current staff qualifications and levels are adequate is highly dependent on what is encompassed in the term "administration of the program." Data are presented in 13 figures. A brief list of references is included. Appendices provide additional data, define the terms used in the budgetary process, and present the justification for the Office of Elementary and Secondary Education's salaries and expenses request for FY 1987 presented to Congress. (BJV)