This paper demonstrates a process for investigating the economic and budgeting impact of educational innovations on the educational systems where they are introduced, based on the assumption that the money to finance educational innovations will have to be shifted from existing programs or other innovations. To illustrate the use of his analytical procedure, the author examines two separate models of educational innovations. Model A represents an attempt to introduce one major organizational change into a school, while Model B illustrates an attempt to implement a number of changes simultaneously. (JG)