||The Recreation Project of the Works Progress Administration has been sponsored by the State Board of Education since 1935. The project was written on a state-wide basis, to operate in each and every county. It was required that in each county or unit, a co-sponsor, having legal authority to conduct recreational activities must assume responsibility for its operation. This authority has been granted to the cities, counties, and school districts by the State Enabling Act. (See Appendix A, pp. 113.) On the basis of this granted authority, local school districts over the state have acted as co-sponsors of the Recreation Project. In this sponsorship they have been required to furnish a certain percentage of the operating costs as required by the Federal Government. These funds did not of necessity come from school finances, since the co-sponsors were given credit for all contributions and expenditures of all other local agencies or individuals that might have taken part in the financing of the Recreation Project. In other words; if the participants or others, paid for the use of school buildings and purchased their own material and equipment, the schools received credit for these expenditures the same as though they had funds. There has been a general feeling by both laymen and school people that this sponsorship has drawn heavily on school finances and that as a result, schools have not been able to carry on regular activities as efficiently as they would have, had they not used school funds for the sponsorship of the Recreation Project. Many have advocated that although the recreational activities have potential educational value, the school finances as now set up should not be used for recreational purposes. If they are to sponsor such activities, the costs should be from special taxation for that purpose. Since many agencies have been involved in the expenditures, it is important to know to what extent school finances have been decreased as a result of the sponsorship of the Recreation Project. It is evident that the schools have suffered only to the extent of the actual expenditures for this specific purpose and not for expenditures made in their behalf by other agencies and individuals.