THE APPLICATION OF PROGRAM BUDGETING TO EDUCATION IS RECOMMENDED. A NATIONAL-LEVEL PROGRAM BUDGET EXAMPLE IS PRESENTED, WITH SUGGESTIONS FOR OBTAINING MORE EFFECTIVE MANAGEMENT OF EDUCATION. FINANCING OF EDUCATION IN THE UNITED STATES IS CURRENTLY UNDERTAKEN BY MORE THAN 40 AGENCIES OF THE FEDERAL GOVERNMENT, 50 STATE GOVERNMENTS, AND MORE THAN 30,000 SCHOOL DISTRICTS. EFFICIENT AND EQUITABLE PLANNING AND BUDGETING IS THUS A FORMIDABLE TASK. FURTHER RESEARCH AND DEVELOPMENT IN PROGRAM BUDGETING IS SUGGESTED TO INCLUDE (1) EXPLICIT DELINEATION OF GOALS, (2) BETTER IDENTIFICATION, MEASURING AND PACKAGING OF COSTS AND BENEFITS, (3) DEVELOPMENT OF BACKUP ADMINISTRATIVE ORGANIZATION, AND (4) MORE ATTENTION TO FUTURE ENVIRONMENTS. THE REPORT RECOMMENDS THE ESTABLISHMENT OF A FEDERAL DEPARTMENT OF EDUCATION. THIS PAPER WAS PRESENTED AT THE NATIONAL MEETING OF THE OPERATIONS RESEARCH SOCIETY OF AMERICA (29TH, SANTA MONICA, MAY 19, 1966). (HW)