This document, part of the NEFP series, explores the school financing issues raised by the necessity for bringing about educational equality in America. The report analyzes the impossibility of true equality in educational services while such gross variation exists in school districts' fiscal capacities, educational needs, and program costs. This volume presents several models for equalization of tax efforts and educational expenditures through State and federal aid. Some form of equalization aid, according to the authors, appears to be the most viable solution to the problem of educational inequities. Funds for this research were provided by an ESEA Title V grant. Related documents are EA 003 537-540, EA 003 543, and EA 003 673. (RA)