This paper presents findings of a study that examined the effect of termination of funding on a magnet-school program. The federally funded program was implemented in Forrest City, Arkansas, to eliminate racial imbalance in the elementary schools. The program was based on the assumption that with enough time and financial assistance, racial integration would significantly improve academic achievement and close the gap between minority and nonminority students, especially among black males. The study analyzed achievement differences in five cohorts among minority and nonminority third- and fourth-grade students for a period of 2 years, 1992-93 and 1993-94. The cohorts included reading, language arts, math, science, and social studies. Teachers completed a questionnaire that assessed their attitudes toward the program. Findings suggest that funding had a significant effect on achievement gains and the revitalization of public education through choice. Student performance showed a decline after funding ended. Although not statistically significant, gain scores were somewhat higher for white females than any other group. Magnet school teachers overwhelmingly endorsed their programs. The program also resulted in a reduction in the number and percent of ethnically isolated schools. The effectiveness of magnet schools can be enhanced by additional staffing, a restructured curriculum, and adequate funding. Two figures and a copy of the teacher questionnaire are included. (LMI)