Funding for compensatory education programs for grades K-6 in Michigan has, since 1971, been based on the results of statewide achievement tests rather than on socioeconomic factors. The Michigan Educational Assessment Program (MEAP) achievement tests are administered to public school students in fourth and seventh grades. To be eligible for state support, a district must have at least 15 percent of its total K-6 enrollment and a minimum of 30 students classified as educationally deficient in basic cognitive skills. Districts receive a fixed number of dollars per eligible pupil, and funds are allocated to districts based on need. Simulations, based on MEAP results and on enrollment data, are used to keep determining: (1) an appropriate definition of low achievers; (2) school districts most in need of compensatory education funds; (3) the per pupil funding level; and (4) the number of districts to receive funding. After seven years of MEAP, some conclusions were: that all community types are represented, although large metropolitan districts tend to receive the greatest amount of funds; and that funding based on achievement scores; although similar to funding patterns based on economic conditions, tends to be spread more widely throughout a district. (MH)