Utilizing data from a random sample of Oklahoma elementary and secondary schools, the study examined interrelationships among the educational process, student achievement, and environment. Results revealed the importance of educational objectives, student backgrounds, high school curriculum, teacher salary, and student density upon optimal resource organization in schools. Data indicated that elementary schooling had a favorable economic payoff for all race-sex groups examined. While achievement scores of Oklahoma public school students were near national norms for grades 4, 8, and 11, performance lagged slightly in middle and junior high schools; minorities had low achievement scores. For a given level of student background, higher levels of educational output were associated with substantial increases in per-unit costs. Student performance was positively related to teacher salary. Problems in financing local education stemmed partly from inappropriate school district organization. Student density affected optimal school district size and cost per student. A linear programming analysis revealed opportunities for costs savings under internal schooling organization as well as school size changes. Larger school districts most efficiently utilized extensive curriculums. The benefits of common schooling in Oklahoma were distributed inversely to family income. The study recommended changes in school funding procedures for those geographic areas which were economically depressed and also had substantial net loss of local capital through net outmigration of residents. (CM)