If the property tax in Alberta becomes more restricted to the financing of property services, educational program budgets can look to federal, provincial, and local sources of incremental and replacement revenues. At the federal level, unconditional grants might be appropriate, similar to the 50-percent of operating costs grants now used for post-secondary education; a federal value-added tax could be enacted for distribution to provinces or municipalities on a population or enrollment basis; and the Federal Government could absorb the costs of social welfare programs now financed at municipal levels. At the provincial level, the most likely alternative to local property taxes for education is the complete absorption of education expenditures along the lines of the New Brunswick experiment. At the local level, incremental tax sources, such as municipal income and sales taxes, could be administered at the provincial level and rebated to municipalities (if and when Alberta joins the other nine provinces in levying a general sales tax.) From a revenue and equity point of view, the province may also want to reconsider the death and estate tax as a source of revenue since the Federal Government has withdrawn from this tax field. (Author)