This report is presented in terms of issues and recommendations concerning the Federal role in school finance. Two major points of agreement emerged from the forums: (1) School officials, representatives of organizations, citizens, and parents agree that, if the urban schools in America are to survive, the Federal Government must take a strong active role; (2) the participants conclude that, as concerns the urban schools, the problem of school finance cannot be separated from the problem of school effectiveness. The report discusses (1) the rising costs of urban education and the need for more money, (2) the special educational needs of urban schools, (3) categorical versus noncategorical funding, (4) local community development and control, (5) educational effectiveness and student achievement, (6) intergovernment relations, and (7) the need for altering and expanding present federally funded educational programs. (JF)