In this report, the author indicates how the Texas school finance system works to the detriment of those districts in which Mexican American students are concentrated. Data for the report were taken from the Civil Rights Commission's 1969 survey of education for Mexican Americans in the southwest and the Department of Health Education and Welfare's 1968 survey of the ethnic composition of school staff and enrollment. According to the data, Mexican American school districts in Texas are handicapped by (1) lower property valuation in Mexican American districts, which results in less revenues although higher taxes are levied; (2) overburdened lower-income Mexican Americans, even at an equal tax rate, because no tax relief is provided; and (3) the failure of State aid under the Foundation Program to equalize the tax burden and to offset disparities in locally raised revenue. On the contrary, according to the author, the Foundation Program contributes to the inequities in local efforts by requiring Mexican American districts to pay more than their rightful share of Foundation costs. A related document is EA 004 602. (Author/JF)