The allocation of education funds by State legislatures, the attitudes of legislators on educational issues, and the interaction of legislators with education lobbyists in Massachusetts, North Carolina, Utah, and Oregon were studied in an attempt to explain how educational resources are allocated in the 50 States and how legislators approach the financing of education. Theories that explain State allocations to education entirely on the basis of economic variables do not adequately explain the full range of educational outcomes. Educational outcomes that are closely related to finances and expenditures are largely determined by economic variables; however, noneconomic outcomes are more closely related to social and political variables. Current allocations for education are closely associated with prior allocations, but changes in educational expenditures are the joint product of social and political variables as well as of economic variables. Non-college-educated, middle class legislators and legislative leaders tended to be more friendly with education lobbyists, but less supportive of increased taxes for education, than were college-educated, affluent, rank-and-file legislators. Legislators' general attitudes toward education were not very closely related to voting on specific educational bills, however. (Author/JG)