This document examines the effect that alternative ways of reforming school finance would have on major city school districts. Using census data, the authors attempt to show that parity between tax effort and revenue yield will not in itself insure fiscal justice for most major city schools. The paper considers the higher costs of educational inputs in urban areas; the economic status of the population as between urban, suburban, and rural areas; the problem of municipal overburden; the additional educational needs of urban children; and fiscal capacity. Numerous tables throughout the paper outline the problem on a city-by-city basis. The document concludes with some recommendations for creating an adequate mechanism for the financing of education. Related documents are EA 005 147, 265, and 270. (Author/DN)