The title sums up the plot, really, although predictably the lovable losers eventually save the day as rival police academies battle for survival in an era of cutbacks in public spending. It's an improvement of sorts on the first sequel, but by this stage you were either a fan or holding the series up as a prime example of Hollywood puerility. Director Jerry Paris, a former character actor who first stepped behind the camera on television's The Dick Van Dyke Show, died shortly after the film's release in the States.

When police funding is cut, the Governor announces he must close one of the academies. To make it fair, the two police academies must compete against each other to stay in operation. Mauser persuades two officers in Lassard's academy to better his odds, but things don't quite turn out as expected...