In response to a request from the Subcommittee on the District of Columbia of the House Committee on Appropriations, the efforts of the District of Columbia to reduce its overall personnel and personnel expenditures and several financial issues involving the District of Columbia Public Schools (DCPS) were evaluated. Difficulties the District of Columbia continues to face in its effort to reduce its overall personnel are outlined. With regard to the public schools, evaluation made it immediately clear that the system needs to address management weaknesses. The DCPS educates over 80,000 students in elementary and secondary school and an additional 4,000 adults. The per pupil cost, after correction for retirement and capital costs, is about $7,800. Personnel costs make up about 80 percent of the total DCPS expenditures. Other costs and management problems, including costs for educating students whose families do not reside in the District, are explored. A high priority among the recommendations for the DCPS is improving information on personnel and students. Another priority is the development of a capital projects plan that addresses the huge capital needs shortfall. (SLD)