THE PURPOSE OF THIS REPORT IS TO PRESENT AN ESTIMATE OF THE TOTAL DOLLAR LOSS INCURRED BY THE STATE DURING 1973-1974 AS A RESULT OF STUDENTS DROPPING OUT OF SCHOOL, BEING EXPELLED OR SUSPENDED FROM SCHOOL, AND BEING RETAINED IN A PARTICULAR GRADE FOR MORE THAN 1 YEAR. LOSSES ARE DESCRIBED IN TWO CATEGORIES, THOSE RELATED DIRECTLY TO COSTS OF OPERATING FLORIDA'S SCHOOLS, AND THOSE DERIVED FROM DISPROPORTIONATE USE OF SOCIAL SERVICES BY UNDEREDUCATED CITIZENS. THE FIRST STEP IN DETERMINING THE COST OF SUCH DISRUPTION WAS TO COMPILE THE TOTAL AMOUNT OF STUDENT TIME LOST (BUT PAID BY THE STATE) DUE TO DROPOUTS, EXPULSIONS, SUSPENSIONS, AND RETENTIONS. ONE STRAIGHTFORWARD APPROACH IS TO CONVERT LOST DAYS TO TOTAL STUDENT YEARS LOST, AND MULTIPLY THAT TOTAL BY THE 1973-1974 FULL-TIME EQUIVALENT EXPENSE OF $945.88 PER PUPIL. THE TOTAL ESTIMATED STUDENT YEARS LOST FOR THE FOUR CATEGORIES WAS 45,994.2 YEARS, WHICH REPRESENTS A TOTAL DOLLAR LOSS OF $43,504,993. COMPARED WITH THIS FIGURE, THE ESTIMATED $6,333,840 PAID IN STATE AND FEDERAL TAXES BY EMPLOYED DROPOUTS AND EXPELLEES IS A POOR RETURN. FURTHER, THE AVERAGE WAGE DIFFERENTIAL BETWEEN INDIVIDUALS WITH AND WITHOUT A HIGH SCHOOL DIPLOMA WAS ESTIMATED AT $1,189. THIS ACCUMULATES TO A TOTAL LOSS OF $55,147,045 FOR THE ENTIRE STATE. INDIVIDUALS WITH LESS THAN HIGH SCHOOL COMPLETION EARNED $47,766,900, COMPARED TO THE NEGLIGIBLE IMMEDIATE EARNINGS OF COUNTERPARTS STILL IN SCHOOL. FINALLY, THE COSTS TO FLORIDA OF SOCIAL SERVICES DIRECTLY ATTRIBUTABLE TO UNDEREDUCATION WERE ESTIMATED AT $69,636,640 FOR 1973-1974. RECOMMENDATIONS ARE PROVIDED REGARDING THE STATEWIDE COSTS/BENEFITS AND THE SOCIAL SERVICE COSTS OF DROPOUTS, EXPULSIONS, SUSPENSIONS, AND RETENTIONS. TABULAR DATA ARE APPENDED, ALONG WITH INFORMATION CONCERNING THE DEVELOPMENT AND EVALUATION OF INSTRUCTIONAL PROGRAMS FOR THE SOCIALLY MALADJUSTED. REFERENCES ARE INCLUDED. (KBL)