This report presents results of a comparative cost study of nursing education programs provided by community colleges, general academic institutions, and health science centers. The study delineates and explains differences in costs and recommends a formula to allocate all general revenue funds appropriated for nursing education programs. The report first presents the study's findings and conclusions about the health care industry, Texas nursing education, and funding recommendations. Next, the report provides background information on the health care industry and a description of nursing education in Texas as it has evolved in the community colleges, general academic institutions, and health care centers. Tables compare the total costs per student to complete the certification or degree program, based on type of institution and type of program. Finally, formula recommendations for funding are presented. Appendices include the recommended formulae for state-support of vocational-technical programs, for faculty salaries and departmental operating budgets, and for nursing faculty salaries in health science centers. Contains 10 references. (GLR)