A procedure to relate funding decisions and project evaluations in an annual grant program for vocational education administered by a state education department (SED) is described. Objectives of the study included developing a set of predictor variables for funding decisions, and outcome variables for evaluating decisions; determining consensus among funding decision makers are applicants so one estimate of the validity of the major variables; and testing the feasibility of obtaining necessary data to implement a procedure linking funding and evaluation data. A first estimate of validity was obtained by examining the relationship between the SED and local education agency directors' ratings and rankings of outcome and predictive impact variables. Feasibility of obtaining distribution data was also examined. Combining distribution data and judgmental data was the recommended procedure for funding and evaluation purposes. The procedure is based on a series of objectively and subjectively known data which are revised systematically and which provide standards acceptable to both decision makers and fund applicants. (Author/MH)