A study examined the activities and the impact of allocations made under Subpart 3 (Program Improvement and Supportive Services) and Subpart 4 (Special Programs for the Disadvantaged) of the Vocational Education Amendments of 1976. Covered by the study were 1,352 allocations made to California secondary school districts and 520 allocations made to California community college districts in 1977-78 and 1978-79. To obtain these data, researchers analyzed the results of questionnaires completed by administrators of 448 community college districts and 1,284 secondary school districts. Data revealed that because funding approval often came too late, both secondary school and community college school districts failed to spend the full budgeted amounts approved for them. Frequently, local education agencies used allocated funds for routine operations rather than for program improvement or for special programs. Furthermore, evidence from financial records was frequently vague, questionable, and inaccurate. Recommendations included calls for development of guidelines concerning the use of Subpart 3 and 4 allocation funds, for further investigation of the precise use of funds, and for review of the intent of the allocation system. (MN)