State aid programs for local schools have not kept pace with New York State's ambitious, revamped Regents examination program. This paper explains a method for developing a comprehensive education cost index and shows how to incorporate it into a performance-based foundation aid system. (Contains 36 references.) (MLH)

State officials attempting school finance reform are faced with the three interlocking problems of school finance, property taxation, and the crisis of central cities. The three basic issues to be considered in dealing with these problems are equity, adequacy, and efficiency. This report examines these school finance problems and critiques…