An exploratory survey was conducted of efforts made by selected state educational agencies (SEAs) to reduce the administrative and paperwork burden of federal and state categorical programs. SEAs were selected that were known to be making special grants management efforts and lengthy telephone interviews were conducted with the officials who were most directly responsible for improving grants management and reducing paperwork. The survey states reported using one or more of six separate grants management techniques: standardized applications, consolidated applications (one form used to apply for two or more programs), consolidated planning, consolidated programs, computerized data core, and data and paperwork review committees. Each technique permits some improvement in grants management and paperwork reduction. However, SEA efforts suggest that no single or simple solution is possible. This study concludes that only limited additional improvement can be achieved at the state level. Action is needed at the highest levels of the federal government, both in the form of congressional mandate and in the form of top-level policy direction from the executive branch. (Author/IRT)