An allocation model for compensatory education was implemented in the Mesa, Arizona Public Schools based on educational need rather than on the current method of allocation which is based on economic need. Five models were developed and presented. The models incorporated, in addition to strict educational need, demographic characteristics of the individual schools, e.g., mobility, ethnicity. The different allocation models were compared to determine their impact on each of the schools with regard to the number of students to be served. Use of the strict educational model is recommended, and the supporting rationale for its selection given. (Author/RC)