The Chapter 2 (Educational Block Grant) program of the Education Consolidation and Improvement Act (ECIA), which became effective on July 1, 1982, aims to improve elementary and secondary education (including pre-school education) for children attending both public and private schools. Two major goals are the following: (1) to provide flexibility for the use of monies in accordance with specific educational needs; and (2) to greatly reduce the administrative and paperwork burden imposed upon the schools. This report, presented in two parts, evaluates the use of Chapter 2 funds in Wisconsin during the academic years 1984-85 and 1985-86, respectively. Each part contains the following sections: (1) State Level Funds; (2) Five Percent State Level Discretionary Projects; (3) State Advisory Committee Report; and (4) Chapter 2 LEA (Local Educational Agencies) Evaluation Survey Results. Data covering allotments per student and program costs are presented on 13 tables. (BJV)