The individual works of Eric Hanushek and the collaborative efforts of Hedges, Laine, and Greenwald in the 1980s and 1990s focused a substantial amount of attention on the relationship between education budget allocations and school performance. Using their opposing hypotheses as a theoretical framework, this study focuses on K-12 education in Missouri for the period from 1990 to 2004, taking into account the cuts in state aid to education that began in 2000. Utilizing four distinct measures of school performance, the results suggest funding levels have a significant impact on student achievement. Per-pupil expenditures alone, however, are not the most significant variable in the models. Other variables, such as rural/urban geographic location, the poverty level of a school district, and the demographic makeup of a district are also influential to school performance levels. (Contains 3 tables and 10 footnotes.)