Oil, gas, and agriculture are the bases of rural Oklahoma's economy, and income from these sectors varied widely during the 1980s. This study investigated revenue sources and the effects of changing revenues for county and town governments and school systems in 36 rural Oklahoma counties. Major sources of local revenue were sales taxes, property taxes, and charges for services. State revenues transferred to local institutions came mainly from sales taxes, income taxes, gross production taxes on oil and gas, excise taxes on motor fuels, and license fees. Federal revenue was a relatively small part of total revenues. Town governments received about 85% of their revenues from local sources. Residents in 21 of 36 sample towns raised their sales tax rates between 1981 and 1986. County governments received 40-50% of their revenues from local sources. Counties without a sales tax relied heavily on state revenue sources and were vulnerable to their fluctuations. State funds, subject to fluctuations, provided about 60% of the operating revenue for public schools. Interviews with 8 county, 12 city and 12 school administrators in 8 case study counties revealed that revenues did increase ahead of inflation in most cases. However, only two schools had added programs and teachers during the 5 year period, and eight had fewer teachers in 1986 than in 1981. Nine towns had reduced employee numbers, and others were using up reserve funds to maintain programs. Most counties had reduced employees, salaries, or programs. This report contains 11 references and 21 data tables. (SV)