The cost of education climbed to $1,587.42 per student in 1977-78, exhibiting a significant 13.9 percent increase over the previous year. The increase was brought about largely by rising costs for instruction, especially teacher salaries. The only budget categories showing decreases were administration and attendance services. The national average for administration dropped from $55.19 per student in 1976-77 to $50.32 per student in 1977-78. Total instruction costs rose from $924.22 to $1,033.67. Within this category, teacher salaries rose from $850.05 to $963.99. Food services increased a sharp 93 percent from $14.28 per student in 1976-77 to $27.63 in 1977-78. Attendance services registered a drop from $7.38 to $6.75. Health services increased 10 percent, bringing them back up to the 1975-76 budget level. Plant operation and maintenance rose from $175.91 to $194.22 per student in 1977-78. Fixed charges increased sharply from $134.93 to $162.51, largely because of employee benefits. Principally because of educational facilities expansion in the "sun belt" states, capital outlay increased 32 percent. Most states increased their total net current expenses. This report presents school costs nationwide and compares them by state, by district size, and by USOE region. Both the function and object reporting systems are used. (Author/JM)