The State of Washington school districts spent 89 percent, $6,814,516.00, of the $7,682,569.00 awarded to them for planned 1985-86 Chapter 2 program expenditures. The two largest budget categories in terms of dollars spent were for instructional materials, 26 percent, and capital outlay, 27 percent. Most of the capital outlay expenditures were associated with the learning and teaching activity areas, and large expenditures related to salaries primarily reflected staff development costs. The activities expenditures given the most emphasis were for learning resources, 37 percent, and teaching, 48 percent. A special survey on guidance, counseling, and testing activities supplemented by Chapter 2, Subchapter B, funds indicates that 26 of the 31 reporting school districts, used funds exclusively for guidance and counseling on all levels, and 9 districts used all of their funds for achievement testing. Seven tables of budget and statistical data are included. (FMW)