A study was conducted to identify the factors that secondary and postsecondary vocational education administrators use as the basis for their decisions to add, terminate, or modify their programs. Data were collected through a telephone survey of 115 secondary and postsecondary administrators and by face-to-face interviews with an additional 25 administrators, representing various states, rural and urban areas as well as types of schools. Analysis of the data gathered showed that the following factors influenced administrators' program decisions: (1) locally conducted surveys of industry; (2) advisory committees, especially in decisions to add or modify programs; (3) student enrollment figures and student interest; (4) job placement rates; (5) input from faculty and administration (a major factor); and (6) published labor market data. One important implication of the study concerns labor market data. Although these published reports often influence policy requirements at the state and federal levels, local administrators' decisions were not usually data based; rather, data reports were used to verify decisions already made or to meet state or federal requirements. A second implication of the study concerns an activity that warrants further attention: faculty visits to local industries should be increased and budgets should allow for this activity. The study also showed the need to harmonize local decision making with legislated decision-making processes to increase the impact of vocational education. (KC)