New York University studied the impact of increases in instructional group size in resource rooms and speech service in the New York City Public Schools by examining increases in 45 public elementary, middle, and senior high schools. Questionnaires were distributed to parents, and teachers and administrators were interviewed. Observations of resource rooms and analysis of achievement data in reading and arithmetic for general education and resource room students also provided study data. About $26 million was saved from the resource room program, an amount that agreed with projected savings. There was a substantial decrease in the reading achievement scores of resource room students, especially at the sixth grade level. Mathematics scores also declined, but not significantly. Resource room teachers reported that the increase in instructional group size diminished their ability to help students. Direct observations of resource room instruction revealed that very little time was spent on individual instruction. Most resource room students received group instruction. Students, on the whole, did tend to be on task in resource room instruction. Observation also indicated that about one-fourth of instructional time was spent escorting students to and from their classrooms, further decreasing instructional time. As students moved through the grades, they were progressively less likely to attend the resource rooms. Parents, who generally thought that the resource room helped their children, were not usually aware of the instructional group size. Waiting lists for students requiring speech services were reduced substantially, but data were insufficient to determine the impact of changed group size on speech service. These findings led to the recommendation that no more than five students should receive resource room instruction at one time. Eleven appendixes contain questionnaires and study correspondence. (Contains five tables.) (SLD)