A detailed status report of education in North Dakota, with particular emphasis on an assessment of the public expenditure for elementary and secondary education, is contained in this document. This report contains facts based upon 2 years of study and careful fact finding. The statewide study is more than a quest for facts; it is a systematic and reasoned quest for solutions to the state's most persistent and compelling problem: the improvement of education. Discussion includes fiscal support and ability, statewide study of school finance and expenditures, and effects of school district size on cost of education. Data tables are presented to support the discussion. Appendix A presents limitations and treatment of data in the study, and Appendix B is a survey and comparison of curricula offered in the various North Dakota high schools. Related documents are RC 000 179, RC 000 180, RC 004 197, RC 004 198, and RC 004 199. (SW)