A technique was developed utilizing socioeconomic and school-related variables for allocating state funds to elementary and secondary schools on the basis of specified state priorities. Principal component analysis was used to reduce variables to a set of factors reflecting the independent dimensions of socioeconomic, resource utilization, and programmatic groups. Factor scores were then calculated for each group and used in regression equations for eight trial application models. The technique facilities recognition of inschool and out-of-school variables, promotion of efficiency among school districts, and incorporation of policy interests into the state school support allocation system. (Author)