Resistance to the development of a Bureau of Indian Affairs (BIA) educational funding formula, as part of a larger BIA reorganization program, comes from many sources: BIA offices at all levels, contract schools and Indian tribes themselves. BIA agencies might support a reasonable funding formula but wouldn't contradict their Area Office on the matter. The Area Offices, who control all educational action except national policy and appropriations, have developed great authority and political power and resist anything which might erode it. The Central Office doesn't want to give up political "flexibility", nor does it feel certain that every BIA school will gain from formula funding. The BIA contract schools are wary of jeopardizing their current funding advantages. The tribes, conservative when it comes to change and fearing the end of federal responsibility for the Indians, resist anything which might fragment the BIA. The BIA should listen to comments from those now receiving funding rather than make a hasty decision on reorganization. Also, the structural benefits of BIA education should be used to advantage. Most importantly, the BIA should establish a structure and system in which reform can occur. (SB)