A study was undertaken in 32 county school districts, located primarily in rural areas, to determine the influence of rurality, financial resources, quality of education, and school performance as measured by educational level attained, on the county school district problem in Arkansas. Both case study and statistical methods were employed in the analysis. It was found that expenditures per enumerate were approximately the same for county and independent districts, but county districts spent a greater percentage of funds on transportation and less for indebtedness. Recommendations of the study included: (1) dissolution of county districts and their annexation to trade center community districts; (2) enlargement of teacher salaries to attract better qualified teachers to rural districts; (3) provision of a minimum millage rate so that each district would be financed to the extent of its wealth; and (5) provision of adequate administrative personnel for rural school districts. (DA)