Present systems for the apportionment of grants from the state or federal level to local public school districts are based primarily on measures of district wealth as modified by weightings for the characteristics of the student population. Until recently little attention has been given to differences among districts in the costs of providing…

This paper provides a clarification of two factors--the differences in pupil need (as reflected by the proportion of disadvantaged or handicapped pupils in a district) and the differences in the prices of school inputs across districts--that affects the cost of educational services and a conceptual framework that may be useful in making welfare…