This study focused on student retention trends in institutional spending and student retention rates. The research also investigated the relationship between student retention and the student-to-faculty ratio. The sample was comprised of 14 publicly funded higher education institutions that had an M1Carnegie classification and were located in one state in the Northeastern region of the United States. The study employed a quantitative, non-experimental, descriptive, comparative, regression analysis research design. The independent variables in the study were (a) full-time equivalent (FTE) student-to-faculty ratios and (b) three expenditure factors (instruction, academic support, student services). The dependent variable was student retention. Data for the independent and dependent variables were obtained from the Integrated Postsecondary Data System (IPEDS). Data were analyzed with ANOVA tests, regression analysis, Tukey's HSD post-hoc test, and a decision tree. Results from the ANOVA tests and regression found that (a) FTE student-to-faculty ratios did not significantly impact student retention, (b) expenditures for instruction significantly impacted student retention, (c) expenditures for academic support significantly impacted student retention, and (d) expenditures for student services significantly impacted student retention. The Tukey's HSD post-hoc test showed that expenditures for student services had a greater impact on student retention than did expenditures for instruction or academic support. The decision tree supported the Tukey findings. Implication for practice were made based on the results of the study. Recommendations for further research were made. Higher education leaders who allocate financial resources for institutional programs might consider the results when making funding decisions. The study added to literature in the area of higher education leadership, institutional effectiveness, and student retention. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]