In 1980, the Constitution of the State of Arizona was amended to establish expenditure limits for a number of political entities, including community colleges. Limits were also established on revenue derived from local tax levies. Concern that limitations on revenue and expenditures could place real constraints on community college operations within 1 to 2 years led to the development of a computer model at Yavapai College to project changes in revenue and expenditure at the college over a 5-year period. The model, written in BASIC and run online in real-time, simulates possible changes based on major alterations in variables affecting revenue and expenditure limits, i.e., full-time student equivalents (FTSE's), the Implicit Price Deflator (IPD) of the Gross National Product, county assessed valuation and net growth, and other budgeted revenues. In six simulations, which assumed various changes in FTSE, county property valuations, and increases in the IPD, the college did not appear to be constrained by the expenditure limit. Two of three sensitivity simulations indicated that college expenditure could be constrained under varying conditions of the IPD or assessed valuations or a combination of both. Appendices include base figures for the simulation model and identification of variables; simulation data; and expenditure and revenue limit assumptions and projections for 1982-83 to 1986-87. (Author/HB)