Two provisions in Title I--maintenance of effort (MOE) and supplement not supplant (SNS)--are designed to limit the extent to which federal funds can be used to replace state and local resources. To assess the quality of oversight of these provisions, the General Accounting Office (GAO) determined how Arizona, California, Florida, Indiana, Louisiana, and Massachusetts conducted oversight of MOE and SNS provisions; noted factors affecting their ability to do so; investigated U.S. Department of Education efforts to enforce MOE and SNS; and examined changes in the six states that occurred in the federal share of education funding from school year 1999-00 to 2000-01. State programs used three tools for oversight: state annual financial reports, the single audit process, and limited program monitoring, each of which had limitations. Few changes occurred in federal/state/local fiscal partnerships in financing education from 1999-00 to 2000-01. GAO recommends that Congress consider eliminating the SNS requirement for schoolwide programs and increasing the MOE requirement, also recommending that the Secretary of Education enhance technical assistance and training efforts to ensure better oversight. Four appendixes contain study scope and methodology, comments from the Department of Education, GAO contacts and staff acknowledgements, and related GAO products. (SM)