Using data from a study of local practices under Title I of the Elementary and Secondary Education Act (ESEA), this paper focuses on budget-related decisions in districts that experienced either level funding or significant budget cuts from 1978 to 1982. Following a general discussion of the allocation of Title I funds, the author examines the effects of Title I budget changes on services to children in public and nonpublic schools and on specific grades and subjects. Findings indicate that (1) Title I funds to instruction tend to decline in proportion to overall budget reductions, (2) the number of children served by Title I programs tends to parallel the percentage change in the budget, (3) the percentage change in the number of schools served tends not to be as pronounced as budget changes, and (4) administrators tend to maintain services to the elementary grades and to provide reading services by cutting early childhood and secondary programs and math and other services. The study concludes by encouraging research into the effects of Chapter 1 of the Education Consolidation and Improvement Act, which has superseded Title I since its passage in 1981. (JBM)