According to a formula developed to measure the adequacy of state educational finance levels, only three of six selected midwestern states provided adequate levels of expenditure per pupil in 1981-82. The formula for determining adequacy, developed by Jerry Miner and Walter McMahon, consists of totaling adequate levels of expenditure in seven areas: instruction, plant operation and maintenance, fixed costs, administration, transportation, food, and other costs. The level of expense judged adequate in each area is calculated by multiplying the national average expenditure per pupil (designated as the standard of adequacy) by the percentage of national educational expenditures accounted for by the expense category in question, and adjusting the result on the basis of state cost of living indexes when personnel costs are involved. Of the states examined, Illinois, Wisconsin, and Michigan achieved financial adequacy while Iowa, Indiana, and Missouri did not. The methods used by Miner and McMahon to develop their formulas are described; limitations to the findings are discussed; and appendixes are provided identifying actual expenditue levels, levels of adequacy, cost of living variations, and public school enrollment in the 50 states. (PGD)