The K-12 student population is becoming increasingly diverse in the United States. In particular, the number of English Language Learners (ELLs) rose from 4.7 million in 1980 to 11.2 million in 2009, more than doubling from 10% to 21% of the student population (U.S. Department of Education n.d.). At approximately 1.8 million, the state of California enrolls the highest number of ELL students in the nation (Aud et al. 2012, 152). Of great concern is the achievement gap between ELL students and their English-only counterparts, one which remains substantial in spite of categorical entitlement funding programs designed to offset academic challenges faced by this population (Hemphill and Vanneman 2011). As a result, the effective allocation and expenditure of categorical entitlement funds at the local level are of much interest to the educational finance community and the field of education as a whole. In this study, the authors analyzed the allocation and expenditure of funds from two categorical entitlement programs--Title III, a federal program, and Economic Impact Aid (EIA), a California state aid program--to provide services for ELL students at the district and school levels using a case study approach. (Contains 3 tables and 12 endnotes.)