The overriding reason for this analysis centers on the widespread, but varied, application of student-faculty ratios (SFR) as a contributing factor in determining the faculty budgeting requirements of public and private institutions. A survey was conducted among heads of state budget offices, heads of central administration for university systems, presidents of public liberal arts colleges, presidents of technical schools, heads of national associations, and state higher education boards to determine how they apply the concept of SFR in the management of public colleges and universities. Of particular concern at this time is the appropriateness of using the ratio data for budgeting purposes in a period of stabilized, and in the near future, declining enrollments. Accordingly, the study identifies alternatives to use of SFR in the budget process. (Author/JMF)