This study documents the differences in school quality-related measures between high-expenditure and low-expenditure school districts, examines the effects of different per-pupil expenditure levels on school quality-related measures, and uses an administrative model to assess the flow of expenditure level into school quality-related measures. The model used by the authors is Mort's Sequential Simplex Model. Data for the statistical analyses were collected for each of New York's 705 school districts for the 1975-76 school year. Based on their analysis, the authors conclude the following: 1) the district power equalizing system or any other school finance system that increases the expenditure-level gap among school districts creates significant differences in school quality-related measures; 2) as expenditure levels rise, so do per-pupil expenditures for instructional services; 3) as per-pupil expenditures increase, professional salaries rise faster than staff/pupil ratios; and 4) the Sequential Simplex Model is a useful approach for studying the effects of the flow of expenditures into school quality-related variables. (JG)