This paper attempts to examine for the State of New York the merits of a district power equalizing formula when it is compared to full State funding of a uniform expenditure level. The author argues against full State funding because he believes that the net effect of many independent decisions that affect small groups of children is preferable to a single decision made at the State level, and that cost variations among districts preclude setting a single expenditure figure for the entire State. As an alternative, the author proposes a school finance program that includes a minimum support program below which no district may spend, a discretionary range of expenditures supported by State and local funds according to the power equalizing concept (including a negative aid provisions), maximum support level beyond which no district may spend, and special aids for extroardinary educational needs. (Author/DN)