This study is concerned with the evolving pattern of funding used in Iowa for the operation of area schools, which include community colleges and postsecondary technical schools. The following are discussed as they relate to the organization of Iowa's area schools: development of the merged area schools, role of the State Board of Public Instruction, identifying 15 merged area schools, enrollment growth, financial accounting system, and expenditures and revenue sources. The four funding formulas for 1966-75 are given. A recommended funding model for the 1975-77 biennium is discussed. The Florida funding model is reviewed for its usefulness in devising a system for Iowa. (Author/KM)