This report brings together projections of student enrollment, educational expenditures, and state revenues. It shows that education expenditures will continue to increase while real revenue will actually decrease. It concludes that, consequently, either the growth of education expenditures must be curtailed or the system for financing education must be changed to provide for more revenue. The report includes some of the cost-keeping options open to the state. These options represent extreme measures meant to show the lengths the state education system would have to go in order to reduce expenditures to the level of projected revenue. (Author)