State education agency personnel in 48 states were surveyed regarding current financing practices that would positively affect small school districts. One-half of the states were found to currently provide some type of additional operating revenue to small schools or school districts through pupil weighting, identification as geographically isolated, or similar mechanisms in the state aid distribution system. Fewer states provided other forms of supplemental revenue to small districts. Small schools in a majority of states were found to be provided with sufficient funds to transport rural pupils. Most school districts did not have access to or use of the property tax levy to a greater degree than larger districts. Provision of money in the form of categorical aid or grants to encourage/sponsor shared services between school districts was found to be limited. Suggestions for further research included more accurate description of mechanisms for funding small schools, analyzing impact of existing aid distribution systems, and identifying alternative funding sources/mechanisms that are not currently being employed. Tables of survey data are placed in the text. (LFL)