To the extent that costs do vary among school districts, neither an equal dollar distribution of funds nor an equal-yield per unit of tax effort can achieve equality of educational inputs or the capacity to acquire them. This document addresses problems relating to the development of guidelines to achieve equality in educational inputs, or resources, through provision for adjustments in State disbursements to school districts designed to take into account differences in input prices or costs. It develops a "pilot" adjustment index that measures the influence on teachers' salaries of factors that affect both the demand for teachers and their supply. The index is designed in such a fashion that, when applied to the initial amount of dollars available, the product of the index and that initial amount will be a sum sufficient to permit all districts to acquire the same quantity of teacher inputs. The approach, in effect, neutralizes differences in demand among districts and compensates for differences in supply conditions facing districts. The authors conclude that the methodology suggested in this paper is capable of providing appropriate guidelines for adjusting dollars per pupil so as to compensate for price differences in teacher salaries. (Author/DN)