This report is designed to help the average school district voter, the new school board member, the PTA participant, and the civic organization member understand the operation of State aid distribution to the school districts of New York State. The publication provides a simplified version of the Educational Finance Task Force Proposal that was enacted by the New York State Legislature and which replaces the Diefendorf shared-cost formula for operating aid. The components of general and special purpose aid described in the report are: (1) operating expense, (2) pupils with special educational needs, (3) pupils with handicapping conditions, (4) secondary pupils, (5) summer session, (6) evening session, (7) growth, (8) budget, (9) building expense, (10) transportation, (11) high tax, (12) special services aid for large city schools, and (13) reorganization incentive. A glossary of terms is included. (Author)