This document reports the findings of the National Study of Local Operations under Chapter 2 of the Education Consoldation and Improvement Act of 1981 concerning the achievement of three of the goals set by federal statute for this educational block grant legislation. These goals are improving education for public school students and school districts, reduction of local administrative burden, and enhancement of local discretion. Data for the study were gathered by mail and telephone survey from a national sample of school districts, and through site visits to 24 districts. The report introduces the purpose of the national study, briefly describes the legislative goals reviewed, and touches on the study methodology. Individual chapters devoted to each of the three goals are then provided. A final chapter summarizes the findings and places them in the broader perspective of block grant implementation and effects. The study's essential findings were that the goals had been achieved, at least to some degree. Appendixes provide error values for the report's tables, a list of antecedent programs consolidated under Chapter 2, and the text of the Chapter 2 legislation. (PGD)