The present theory of electron temperature in the daytime mid-latitude ionosphere is tested by using Atmosphere Explorer-C measurements. In the region below 300 km, where a balance is expected between electron heating by photoelectron impact and electron cooling to ions and neutrals, we find an imbalance in which the cooling rate is consistently higher than the heating rate. The shapes of the altitude profiles also differ substantially. The cooling rate has a sharp peak at about 220 km, while the heating rate exhibits a broad peak about 30 km lower. Improved agreement is achieved at higher altitudes by using an oxygen fine structure loss rate smaller by a factor of 2, based on more recent collision strength calculations. Although this improves the overall agreement of the heating and cooling rates, the shape discrepancy remains, and the new cooling rate falls consistently below the heating rate below 200 km. We conclude that the electron thermal balance is not adequately understood and that more theoretical and experimental work is needed on the atomic and perhaps the molecular cross sections for electron cooling.