An investigation into the costs of adult continuing education in Ontario was conducted to provide information that could be used in setting the level of provincial grants for continuing education programs. The research was carried out over a 6-month period from April to October 1987. The research strategy involved three stages: a review of the literature on continuing education funding, a survey of 1986 continuing education expenditures in Ontario school boards, and six case studies of continuing education programs in a sample of Ontario school boards. An analysis of the data gathered found five key issues and five subordinate issues. Key issues are as follows: (1) the average expenditure per continuing education average daily enrollment in 1986 for the province as a whole was $2,816; (2) it is unlikely that current differences in rates of pay between continuing education and day school teachers will remain, especially in the case of credit classes for which certificated teachers are required; (3) expenditures per pupil for continuing education programs are less than those for day school programs in large part due to the lower levels of service being provided; (4) adult continuing education is the "frontier" of educational development and is in a state of disarray; and (5) the lack of provincial funding for all general interest courses deprives some groups of this service and the opportunity to enhance the skills and health of Ontario residents. (Two appendices making up nearly half the document contain (1) the six case studies and (2) the questionnaires and interview guides. A brief bibliography is included. (KC)