This dissertation begins with a description of some methods employed in making public-sector resource-allocation decisions, with conclusions on the appropriateness of each method for evaluating the ongoing programs of a school system. The second section has been rewritten and published as "A Comprehensive Theory of Cost-Effectiveness" (EA 002 920). This section develops the theoretical substantiation for cost-effectiveness analysis which can serve as the groundwork for evaluation of ongoing school systems and which may be used for planning as well as evaluation, taking the decision maker's preferences into account. A case study is then considered which generates the data systems required by the model. The model provides outputs, whose utility for the decision maker is discussed. The sensitivity of model outputs to various changes in the decision maker's value system is also explored. The final section provides specific recommendations to decision makers as a result of the case study and presents a more general set of cautions and recommendations. Suggestions for future research are presented, and a 61-entry bibliography is attached. (Author/DE)