The Job Training Placement Act (JTPA) of 1982, a federally funded program directed by individual states, provides financial assistance to any state education agency responsible for education and training. Section 123(b) of the JTPA requires states to match the federal assistance with income from other sources. This paper reports on the study undertaken by the Bureau of Educational Research and Services, Memphis State University, at the request of the Tennessee State Board of Regents (SBR). The SBR was assigned to identify and document a generalizable formula for determining eligible funds used to match JTPA expenditures. The reason for the development of the formula was to propose a change in current practices of identifying JTPA matching funds on the record of individual participants. The SBR proposed to meet the JTPA matching requirements by utilizing Pell Grant Program funds and subsequent state training funds expended for those who meet JTPA eligibility criteria. Procedures included (1) utilizing data contained in institutional reports during the fall quarter of 1984, and (2) collecting data on individual students enrolled in area vocational-technical schools and state technical institutes. Findings showed that the ratio of Pell Grant and state in-kind funds expended for JTPA recipients to JTPA funds was 5.31 to 1, or a 5 to 1 overmatch. Eight tables are included. (IW)