Studies of school district organization generally include an examination of enrollments, average daily attendance, assessed valuation, potential and predicted growth rate, bonded indebtedness, school district boundaries, transportation, special services, and other factors, but little concern or attention is given to the business functions because it is difficult to grapple with the nebulous concept of service. In attempting to define school business management, any tabulation of the areas of responsibility would demonstrate the lack of systematic and disciplined treatment of school business management. The problem centers around proposing criteria and guidelines for the establishment of school districts which would make possible efficient and effective school business management with economy of operation; and which would give consideration to optimum criteria for varying geographic factors. This paper aims at identifying the problems of school business administration by analyzing those services best provided with economy and efficiency and consistent with accepted practices at attendance, area, district, regional, State, and multi-State levels. Primary consideration is given to a system of functional administrative units that would provide quality programs and services efficiently and economically, through the consolidation of services, or the centralization of various administrative functions whenever feasible. (Author)