Attempts to establish relationships between the public schools and universities are often beset by difficulties in implementation. These difficulties may occur when interorganizational relationships are burdened by inadequate funding and the lack of formalized structures governing the relationship's operation. Using the Sunbelt State University and Sunbelt Public Schools as an example, the Schools Leadership Association (SLA) was formed in 1982 to combine the personnel and resources of these two organizations. This collaborative venture would provide school administrators with inservice opportunities. It would also provide preservice experience for those who want to gain the necessary skills to become a school administrator. An analysis of the data identified factors that affected the collaborative arrangement, resulting in the diminution of the university's role in the linkage. One such factor was the tenuous funding. There was no joint-powers agreement governing the relationship specifically describing the contribution from and responsibility of each organization. The absence of such an agreement is detailed. The interorganizational relationship literature provides insight into the reasons for establishing cooperative relationships and the resources required. Described are a variety of programs that the SLA is engaged in and the resulting effects of the lack of and change in funding. (RR)