The Rural Initiative Program funds projects addressing specific rural education problems. Sample projects, chosen both by matching programs to selection criteria and by competition, include: staff development improvement, tele-teaching, expanded rural course offerings, and school-based entrepreneurship. This paper discusses cost analysis procedures employed by Congress, the Office of Educational Research and Improvement (OERI), and the Regional Educational Labs in conceptualizing, designing, developing, operating and evaluating the program. The paper describes and differentiates analyses involving cost effectiveness, cost benefit, cost utility, and cost feasibility. It examines decision criteria, values that underlie recommendations for action. The decision criteria discussed are: effectiveness, efficiency, adequacy, equity, responsiveness, and appropriateness. At each stage of program development, Congressional conceptualization, OERI program design, Regional Lab program proposal and development, and program operation, different types of cost analysis are applicable. In determining benefits, both the intended and unintended effects of the programs must be carefully documented. An initial list of unintended effects of these programs includes empowerment of rural educators, development of new rural organizations, increased institutional capacity of the Regional Laboratories, development of rural research, and heightened interest in rural education. This paper contains 20 references. (DHP)