School finance has traditionally concentrated on the distribution of resources to school districts, focusing primarily on the equitable distribution of funds within a state. In recent years, more attention has been paid to the issue of productivity-how effectively school districts use the funds they receive to provide education to students. This digest summarizes data on expenditures and staffing patterns in the nation's schools, weighs the impact of financial resources on students' educational outcomes, and discusses the implications of these allocation patterns for future policy at both the state and local levels. Translating the broad expenditure patterns into staffing patterns is the first step in analyzing what happens to the education dollar. The single biggest expenditure in school districts is for personnel. However, over the years, the trend has been to replace many teachers with instructional aides, pupil support staff, and specialist teachers within schools who do not teach in regular classrooms. Regardless of what impact additional funds might have, it is important that existing resources be used as efficiently as possible. Before seeking additional funds, there may be ways to restructure what is done with existing funds. The Accelerated Schools reform model, the New American Schools program designs, and hard analyses of current staffing patterns may all yield improved student performance. (DFR)