This report reviews local tax reform and describes an approach to simulating the effects of proposed tax reform on local school districts in Pennsylvania. The microcomputer spreadsheet simulation led to the development of a model able to meet the feasibility criteria established for such a simulation model. The model was designed to input financial data from 1985 through 1987, estimate the revenues anticipated for the current year (1987-1988); and then use budgeted revenues for the following year (1988-1989), the last year under the current system. (JAM)