This paper presents a historical portrait of the process of financial resource allocation at Compton Community College (CCC). Introductory material provides information on the college, its organization, and its budgeting and accounting procedures. Next, changes in finances occurring between 1974-75 and 1977-78 are outlined, including the growth of non-special project revenue by 10% per annum and an increase in federal aid. In this section, the development of collective bargaining and the creation of a college committee to study institutional policy formation and implementation are reviewed. Then, the period between 1977 and 1981 is characterized in terms of: (1) the termination of 12 of 92 teaching faculty; (2) the elimination of local property tax revenues under California's Proposition 13 and their replacement by state "bail out" funds; (3) the development of a more centralized decision-making structure at CCC; (4) the increase in tension at the college as faculty were excluded from decision making; (5) the resignation of 93% of CCC's managers; and (6) the absence of institutionwide involvement in CCC's planning process. Finally, suggestions for revitalizing the financial allocation process are presented, e.g., instituting an interdependent, cooperative management style and developing a routine, efficient, participatory planning mechanism. Graphs, charts, and tables provide organizational and financial data. Appendices present contrasting approaches to decision making. (HB)