This study was conducted to analyze the effect of implementation of Texas House Bill 72 on budgets of selected Texas public school districts and to ascertain educational benefits to students derived from implementation of the bill as perceived by superintendents. Questionnaires were sent to superintendents of the Region 10 Education Service Center to determine perceived educational benefits to students. A demographic data sheet provided information for classifying respondents by educational experience, superintendent experience, and district enrollment classifications. Sixty-two districts responded. Official public school budget data for each district were analyzed for fiscal years 1983 through 1986 as were data from the questionnaire. Overall statistical information was gleaned through CONDESCRIPTIVE. Mean total expenditures, mean total tax rate, and state fiscal aid data were compiled, tabulated, and reported for each enrollment classification and entire sample. In addition, a t-test between the difference of two independent means at a probability level of .05 was applied. The two independent means were the averages of data for the two years prior to and after implementation of the law for expenditures, tax rates, and state fiscal contributions. Data comparing local and state expenditures were compiled, tabulated, and reported for each group to compare local and state fiscal effort prior to and after implementation. One-way analysis of variance was used to compare demographic variables with perceived educational benefits. Item and factor analyses were applied to establish reliability.