Expenditures on further education (FE) in England were examined as part of the Comprehensive Spending Review (CSR), which was a zero-based budgeting exercise performed by the Labour government for a 3-year period covering 1999-2002. The CSR increased total FE funding by 7% in 1999-2000. When the anticipated 5% increase in FE enrollments and inflation are factored in, however, FE colleges will be required to make efficiency gains of 1%. Extra money will be linked to targets. Growth, efficiency, and increased achieved were concluded to be the three likely main targets for FE. Decisions on funding beyond 2000 will be shaped by the government's lifelong learning policies. According to the 1998 green paper "Learning Age," those policies will center around two flagship projects: the Individual Learning Accounts and University for Industry projects. Public financial support for adults will be targeted toward the following goals: bringing back those adults who stopped learning after school, addressing particular shortages, widening disadvantaged adults' access to education, and enabling individuals to choose the best method of learning for them. National pilots of new education maintenance allowances were planned for 1999-2000. (Contains 10 tables.) (MN)