This paper presents the revised 1975-76 allocation of funds for instructional services and capital note items. The revisions were necessary because of the impact of the 1975-77 agreement between the city board of education and the American Federation of Teachers local on obligatory teacher staffing patterns (such as minimum pupil-teacher ratios required to hold class sizes below contractual limits). A key feature of the agreement is the requirement that teachers employed in Title I schools waive two preparation periods. Although this modification will result in more effective use of teachers, it will not obviate the drastic cutbacks in services that must be made as a result of reductions in the amount of money budgeted to instructional services. Numerous charts are included. (Author/IRT)