This handbook is designed to assist school board members and school administrators in dealing with school management issues and problems. The first chapter provides a historical review of public school finance. The next three chapters deal with the source of public education funding, the general nature of local taxing authority, and the manner in which state taxing authority augments local taxes. Two of the chapters deal with costs and cost influences. Chapter 5 deals with federal aid. Chapter 6 provides a layman's understanding of the sometimes complicated Pennsylvania school subsidy system. It also provides some comparisons with other state subsidy systems. Chapter 7 provides comparative financial statistics at the national, state, and local levels. Chapter 8 presents existing and possible future options school officials may consider as they examine public school costs. The final chapter offers some alternatives and suggestions for improved school district business practices. (Author/IRT)