The report summarizes results from a mental retardation/developmental disabilities (MR/DD) expenditure analysis study. Three parts comprised the study: (1) the state government expenditure analysis which covered fiscal years (FY) 1977 through 1984, and dealt primarily with state general fund expenditures of the principal MR/DD state agency, the state's use of federal reimbursements for intermediate care facilities for the mentally retarded (ICF/MR), and its use of Federal Social Services Block Grant funding (Title XX); (2) a more historically comprehensive analysis of federal government expenditures which covered the period 1945-1985 and analyzed funding data from 82 federal MR/DD programs in the areas of services, research, training, income maintenance, and construction; and (3) an intergovernmental analysis. Results of the state analysis include state rankings on three scales of state MR/DD fiscal effort: personal income share, total state budget share, and per capita expenditure. Cumulative fiscal efforts over the 8-year period (FY1977-84) are also illustrated in a table for community services, institutional services, and both sectors combined. The federal analysis includes a tracing of the historical evolution of federal MR/DD activity from 1914 to the present. The chapter on intergovernmental expenditures looks at trends in state-federal MR/DD spending and state expenditure shifts toward community objectives. Extensive appended materials are included. (CL)