There are several ways to construct an education price index (EPI). This report represents an attempt to identify methods and procedures for producing an accurate measure of educational resource input price indices. The methods are largely mathematical equations that link student achievement to the unique social, political, and economic costs of education in a particular school district. When applied to data from school districts in Ohio and Michigan, the resulting EPI behaves reasonably because its variation is not excessive. Most districts fall in the range of 97 to 103 percent of the state average. The EPI is also stable in the sense that it is insensitive to minor changes in the methods of its derivation. It is recommended that future research concentrate on the development of theory and on its application to a more accurate specification of the variables in the structural equations. (JAM)