The report showed ways of providing rural youths with quality schooling while keeping costs down. An Oklahoma survey of student needs measured quality differences between rural and urban areas. Students from farms, ranches, and small towns consistently ranked below students in middle and large cities on achievement tests in each grade level examined (4, 8, and 11), which suggested that urban students were receiving a higher quality education than rural students. Two ways to improve this situation were to: (1) improve the quality and efficiency of existing schools and (2) combine existing schools in instances where quality cannot be provided at a reasonable cost because of few students. The report noted that changing employment opportunities have caused some rural communities to decline and others to expand in population, necessitating changes in rural institutions such as school districts. Rural communities, however, frequently lack resources and an efficient allocation of these resources to provide adequate schools. The report therefore suggested that cooperation with other school districts may be necessary to share needed specialized services at a reasonable cost. If this approach is not sufficient, school district reorganization may be necessary to reduce costs and provide a quality program. Reported cost estimates showed that savings from reorganization can be substantial while the quality of the school is increased. (KM)