Often during budget time, school boards are faced with the dilemma of whether to designate funds for teachers and teaching materials or for buses and buildings. Frequently, this leads to the impression that buses and buildings consume too much of the budget and have no direct relationship to the student. This report examines the validity of this impression. It provides a definition of what constitutes part of a facility and includes features such as color, maintenance, age, classroom structure, climate conditions, student density, noise, and lighting. Research on the relationships between facilities and student achievement, as well as performance and attitudes is reviewed. The report describes the difficulties inherent in this kind of research, and examines some of the research syntheses that have focused on the correlation between student learning and the condition of facilities. Studies of facilities' variables reported that student achievement scores were higher when windows, floors, heat, roofs, locker conditions, ceilings, laboratory conditions, age of the facility, lighting, interior paint, clean floors, and cosmetic conditions in general were rated above standard by school staff. Studies suggested that the facilities also affected attitudes and behaviors. It is suggested that the place where students learn can encourage good student behaviors. (RJM)