Assuming that full State funding proposals will become more prevalent as a result of recent court decisions affecting State educational financing systems, the author examines the problems and opportunities presented by full State funding and suggests a programmatic approach to the allocation of State funds to local school districts. He suggests that existing categorical aid programs be condensed into nine instructional and three student services programs, with a program cost formula for each of the twelve programs to be developed. These formulas could be as objective as possible to assure that all local school systems would receive equal treatment, yet be sensitive to unusual local conditions that affect the amount of funds needed. (Author/JF)