This study focuses on how central city school districts can benefit from educational finance reform. The publication is designed for use by both those charged with the responsibility for education matters and by the general public. The document begins with a discussion of the fiscal impact of several popular alternative school finance reforms, including traditional percentage equalization, district power equalization, and full State funding of education. Next, it details the factors that affect city school finances, those to be considered in any significant school finance reform intending to aid urban school districts. The study examines what States have done in response to urban fiscal needs and presents an analysis of a suggested school finance reform measure, which can provide more broadgauged fiscal equity -- particularly for urban schools. The document concludes with suggested general policies that could be followed by large city and other fiscally disadvantaged school districts to make the most of future reform opportunities. (Page 45 may reproduce poorly.) (Author/DN)