UNEQUAL DISTRIBUTION IN SOME STATES OF STATE TAX MONIES FOR SCHOOLS HAS RESULTED IN A MUCH HIGHER PROPORTIONATE FUNDING FOR SUBURBAN SCHOOLS THAN URBAN SCHOOLS. THIS FISCAL INEQUITY IS DUE TO EXCESSIVE RELIANCE UPON THE NUMBER OF DOLLARS OF ASSESSED VALUE BEHIND EACH STUDENT IN THE DISTRICT AND TO FAILURE BY THE STATES TO RECOGNIZE THE DISPROPORTIONATE EXTENT OF A CITY'S OBLIGATIONS TO PROVIDE MUNICIPAL NONSCHOOL SERVICES. FEDERAL GOVERNMENT EDUCATIONAL SUPPORT ASSISTS IN THE CORRECTION OF THIS IMBALANCE BY PROVIDING (1) ADDITIONAL MONEY FOR SERVICES FOR ALL SCHOOL CHILDREN AND (2) SPECIAL EDUCATIONAL SERVICES FOR THE CULTURALLY DEPRIVED CHILD, OTHERWISE HEADED FOR FAILURE. PITTSBURGH'S SUCCESS IN IMPROVING ITS FINANCIAL SUPPORT AND EDUCATIONAL PROGRAM WAS ACHIEVED BY AN APPOINTED BOARD OF EDUCATION WHICH ENJOYED BROAD PUBLIC SUPPORT OF CITY BUSINESS, MINORITY, AND INTELLECTUAL COMMUNITIES. BOTH A MORE REALISTIC PERCEPTION OF THE ROLE OF THE SCHOOL IN THE COMMUNITY AND A SYSTEMATIC COORDINATION OF ALL POSSIBLE RESOURCES ARE NEEDED. SEVEN NEW APPROACHES TO OLD PROBLEMS ARE MADE, INCLUDING (1) CONSORTIUMS WITH OPEN ENROLLMENT FOR JUNIOR AND SENIOR HIGH SCHOOL STUDENTS, (2) INDIVIDUAL SCHEDULING FOR ACHIEVING AS WELL AS NONACHIEVING STUDENTS, AND (3) INVOLVEMENT OF PARENTS AS AIDES AND PARTICIPANTS IN THE SCHOOL'S DECISIONMAKING PROCESS. THIS PAPER WAS PRESENTED AT THE URBAN SCHOOLS CONFERENCE (WASHINGTON, D.C., SEPTEMBER 22, 1967). (JK)