Evaluating alternatives provides both the reason for and the technique of program budgeting for educational planning. The activities demanded by the program budgeting system allow systematic choosing of a preferred course of action. Within this system, alternatives are considered in the context of all other programs. This document presents concepts, techniques, and problems involved in educational program analysis. Data from a developmental program in the San Jose Unified School District are presented as a basis for the discussion. (Author/RA)