The purposes of this study were twofold: 1) to determine the predictability of the amount of county current expenditures for the North Carolina Public School System by using nineteen county characteristics, and 2) to determine the predictability of the amount of county current expenditures for the North Carolina Community College System by using these same nineteen county characteristics. All data were collected from the year 1985 with the exception of general population data, which were secured from the Census of 1980. Factor analysis was performed on the nineteen predictor variables in order to remove multicollinearity between the variables and to reduce the data to a manageable size for subsequent multiple regression I analysis. Stepwise regression was then utilized to determine which factors best predicted the amount of local revenues spent for educational current expenditures. Factors 2, 3, and 5 were significant predictors for per pupil local current expenditure for the public schools. Factor 2 included median years of education completed by the general population, high employment, and high income variables. Factor 3 described the relationship with per capita property value and per capita property tax. It also included the migration rate in the general population. Factor 5 included per pupil state current expenditure for the public schools, percent of high school juniors passing the North Carolina Competency Test, and percent of labor force in new and expanded industry. Factors 2 and 4 were significant predictors for per pupil local current expenditure for the community college. Factor 4 represented per pupil state expenditure for the community college and percent of white pupils in the community college. / Ed. D.