Using the Serrano v. Priest case and federal revenue sharing as precedents, it is proposed that the federal government furnish (on a regionally adjusted per child rate) 50 percent of the needed school revenues directly to the state through an earmarked "special revenue sharing" package. This would be granted only if the states would raise and disburse the other 50 percent based on a per child rate. These amounts would be adjusted only for special educational needs on an "area needs" basis offset by a reduced state tax. Since it would be disbursed equally throughout the state on a per child basis, such an educational tax could be based on a property tax as well as on other forms of tax. A condition of this arrangement would be the elimination of any provision for the collection of any sort of community-based tax that would enhance its educational opportunity position over other communities within the state. (Author/MLF)