The purpose of this study was to assess whether a relationship existed between the financial characteristics and the perceived quality of selected Iowa public schools for the 1992-93 school year;Following a comprehensive review of literature, an assessment instrument designed for educational organizations based on the Baldrige quality award criteria was utilized to assess the perception of current quality and ideal quality of selected schools. Financial characteristics were compiled from State of Iowa information;The population used in the survey for this study included responses from five teachers, three support personnel, two administrators, the superintendent, all board members, and two high school students from 42 school districts in the State of Iowa. Schools selected were from all four geographical quadrants of Iowa, and the spread in student population was similar to the district profile of Iowa;Initial data analysis involved calculation of the mean perceived existing quality and perceived ideal quality responses for each school district in the sample for each of 45 survey items. The ratio of the perceived current quality average to the perceived ideal quality average (Perceived Quality Assessment Index or PQAI) was calculated for each district in the sample and for each district on each of the seven quality dimensions defined by the instrument. Linear regressions were calculated ([alpha] =.05) for each of the six identified financial characteristics in relation to the PQAI;Sample districts were separated into the high 1/3 group, middle 1/3 group, and low 1/3 group by PQAI. The six financial characteristics for the schools from the high and low PQAI groups were compared by sample and by the seven quality dimensions to test the null hypotheses for differences utilizing a two-tailed, t test ([alpha] =.05);There were significant differences between the high and low PQAI groups, however, there were not significant differences between the high and low financial characteristics by PQAI groups. Analyses didn't result in significant correlations between financial characteristics and PQAI;In summary, it appears Iowa school districts shouldn't expect financial characteristics to be related to quality improvement initiatives from data analyzed from the 1992-93 school year.