Give a Little or Lose a Lot? The Effects of Increased Transparency on Local Applications for Federal Grant Funds

In this article, I examine the effects of the increased transparency and reporting requirements on the decisions of local education agencies (LEAs) to draw down federal dollars allocated to state programs in nonmission areas. Data from LEAs and program expenditures are used to develop a model detailing how transparency impacts the decisions of LEAs in two states in drawing down funds from a federal grant program. Findings suggest that rather than the theoretical expectation that managers act in an anticipatory manner, managers are more concerned with immediate financial needs.