This study surveyed perceptions of parents, teachers, and principals concerning reduced class size classrooms (RS) with first and second graders versus traditional size classrooms (TS). Participating in the study were 63 RS parents, 80 TS parents, 12 RS teachers, 13 TS teachers, and 14 principals in the Saginaw, Michigan school district. Response rates for RS groups were substantially smaller than those for TS groups. The major findings indicated that the majority of respondents considered the benefits of reduced size classrooms worth the extra expenditure (92 percent first grade parents, 70 percent second grade parents, 88 percent principals). Overall, parents saw approximately the same amount of student improvement in the variables under study regardless of class size condition. The largest area of academic increase seen by parents was in learning to read, regardless of condition. Principals and teachers reported substantially more improvement in the RS over the TS condition. Teachers at TS sites and principals recommended the addition of more reduced-size classrooms. First grade parents in both conditions and second grade parents in the TS condition wanted more one-to-one instruction. Parents in the RS condition thought that teachers should be more sensitive and provide more feedback. Teachers in TS sites thought their effectiveness was limited because diverse student ability levels. Principals were concerned about the possibility of an elite class and that students most in need of one-to-one instruction might not be placed in RS classrooms. (Four appendices include the surveys used, detailed results from the surveys by question, and results summarized by respondent groups.) (KB)