The reluctance of the Southeast to increase educational spending is closely linked to the region's lagging behind the rest of the nation in quality of education and hence in overall standard of living. Six "myths" about educational spending, widely held in the Southeast, are here addressed: (1) That educational expenditures, worthwhile in the long run, are burdensome in the short run. In reality, dollars spent on education create jobs, purchase goods and services, and contribute to local economies. (2) That educational spending has greatly increased. In truth, increases have been modest relative to inflation and new demands. (3) That higher salaries have improved the economic status of teachers. In fact, because of inflation, teachers' purchasing power has declined, and too little has been spent for support services. (4) That the Southeast spends proportionally more than other regions. Actually, expenditure per capita corresponds to the national average. (5) That the Southeast has been closing the gap. In reality, unless spending increases dramatically, the region will remain in last place. (6) That the Southeast cannot afford increased educational spending. On the contrary, one cent more per dollar of personal income could turn mediocrity into excellence. (TE)