The purpose of this study was to investigate the problem of "underfunding" of the public schools in majority black districts both before and after desegregation. A research design was developed to answer the following three questions: (1) Does the problem of underfunding exist? (2) If the problem exists, is the problem limited to particular districts, or is it systemic?, and (3) If the problem exists in general, how can it be demonstrated in individual predominantly black districts? Two kinds of analyses are used: first, an aggregate analysis of the local fiscal patterns of all South Carolina school districts over a five year period before and a five year period after major desegregation in the state, and second, a longitudinal study of local fiscal support patterns in individual predominantly black districts. Both analyses used district tax effort as the primary measure of underfunding. Among the main findings of the study are the following: (1) in the most recent school year, tax rates in predominantly black school districts were on the average, substantially lower than tax rates in predominantly white school districts, (2) over the past decade, tax rates in predominantly black school districts have fallen increasingly behind those in predominantly white districts, and (3) lower tax rates, combined with lower average levels of property wealth, have produced lower levels of local revenues in predominantly black districts than in all other districts in the state. (Author/AM)