The prospect of simultaneous cuts in Federal and State aid to public school education in some States poses a serious threat to large cities which suffer financial stress and face the added responsibility of educating large numbers of poor black and Hispanic children. Financial needs that might result from cuts in Federal aid cannot be met by State and city governments which, surveys show, face fiscal pressures of their own. Furthermore, central city public schools are experiencing a weakening political position because the majority of children who presently depend on public education are from disadvantaged minority groups and are not the children of people who control the economy and politics of the city. These sweeping changes demand that research in large city school districts address not only fiscal and management issues, but also the nature of urban societies, the future of public institutions, and the impact of budget cuts on students and the staff who make the schools function. (MJL)