Recently the public has grown increasingly verbal, through its elected representatives, in demanding some evidence of the effectiveness and efficiency of the institutions of higher education. This has resulted in tighter restrictions on the educational dollar, causing most administrators to look for ways to become efficient as well as effective in operating educational programs. Increasing emphasis on Program Planning and Budgeting Systems (PPBS) as a methodology for analyzing financial needs has forced educators to seek, for the first time, measurable outputs related to the institution's basic purposes. Data from exemplary community colleges were analyzed to: (1) identify and investigate institutional and community input variables, and specified community college output variables, (2) determine relationships between input and output variables, and (3) seek to identify implications of existing relationships. The primary purpose of the study was (1) the identification of significant variables existing in real situations, (2) discovering relationships among the variables, and (3) laying a groundwork for later, more systematic and rigorous testing of hypotheses. Spearman rank order coefficients of correlation were calculated relating each input with each output variable, and the level of significance of each coefficient was determined. A number of conclusions and implications based on the study, are discussed. (AL)