The study comprises two volumes on theuse of public resources to provide educational services inBrazilian municipalities, by which the policy report (volume1) presents recommendations, based on the research report(volume 2). This research outlines the policy context,objectives, and methodology practiced, to then focus on theextent to which municipalities benefited from effortsdesigned to provide additional resources for education. Adescription, and analysis of the patterns of change in theavailability of resources, documents the substantialredirection in resources from State governments to Municipalgovernments that took place during 1996-02, and likewise,from prosperous municipalities, to relatively lessprosperous ones, while discussions, and analyses on thecomposition of expenditures explore issues on the municipalmanagement of such resources, in particular, on specificissues regarding teachers as related to municipal managementof resources. The econometric analysis of the educationalimpact of additional resources, and the management shift ofresources from States to Municipalities, shows theeducational impact as measured in terms of changes inindicators of internal efficiency of municipal educationsystems. Policy conclusions suggest efforts should build onthe success of previous reforms, by extending the results ofsuccessful municipalities to lesser performing ones, with afocus on educational quality, and supported by federalprograms that provide financial incentives, and technical assistance.
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