A study examined the relationship between educational investments and economic development in the small community of Canandaigua, New York. A field study approach was used to collect data pertaining to the city's population characteristics, income characteristics, economic conditions, unemployment rates, and housing conditions. These data were analyzed in conjunction with figures pertaining to Canandaigua's investment in continuing adult education, job training, formal education, and community education. Comparison of these data with formal guidelines for educational investment in a community of the types of Canandaigua indicated that the city is spending more than enough of its available money on educational enterprises. However, too much is being spent on formal education. Therefore, recommendations were made calling for increased funding in the areas of adult and continuing education. The investment guidelines also suggest that Canandaigua must provide more money for both continuinq and job training education. Recommendations included calls for similar studies in other communities and for using bond ratings to determine the economic level of a community. (A related dissertation on educational investments and economic growth in smaller communities is available separately--see note.) (MN)