IN NEW HAMPSHIRE, NEARLY 90 PERCENT OF THE LOCAL SCHOOL BUDGET IS RAISED THROUGH LOCAL TAXES. BECAUSE OF THIS HIGH DEGREE OF DEPENDENCE ON LOCAL EFFORT, EDUCATIONAL OPPORTUNITY VARIES WITH PREVAILING ECONOMIC CONDITIONS AMONG THE 154 SCHOOL DISTRICTS WHICH HAVE A PUPIL ENROLLMENT OF LESS THAN 2,500. COSTS PER PUPIL IN THESE DISTRICTS DECLINE AS THE PUPIL POPULATION INCREASES. A PATTERN OF LESS TAXABLE WEALTH PER PUPIL AND LOW PER PUPIL EXPENDITURES IS NOTICEABLE IN THE RURAL AREAS OF THE STATE. USUALLY, THE SMALL RURAL DISTRICTS ARE LESS ABLE TO AFFORD EQUAL EDUCATIONAL OPPORTUNITIES. IMPROVEMENT OF THIS SITUATION WILL COME THROUGH STATE AID OR SOME REORGANIZATION OF DISTRICTS. THE STATE PROVIDES MONEY OVER AND ABOVE THE PROCEEDS OF THE TAX OF $14 PER THOUSAND DOLLARS OF EQUALIZED VALUATION FOR EACH DISTRICT. HOWEVER, THE LEGISLATURE HAS NOT APPROVED ADEQUATE FUNDS TO MEET FULLY THE INTENT OF THIS FOUNDATION AID PROGRAM PROVIDED BY LAW. CONSEQUENTLY, SMALL RURAL DISTRICTS SHOULD CONSIDER THE POSSIBILITY OF THE ORGANIZATION OF A COOPERATIVE SCHOOL DISTRICT, OR A REGIONAL ENROLLMENT AREA. (ES)