Experiences of the Denver public schools serve as a base for a discussion of problems common to large urban school districts. Financial problems in Denver include (1) a moratorium on suburban annexation that prevents increasing the area of taxation, (2) the highest proportion of poverty-level children in the state, (3) special services needed by these disadvantaged children, (4) desegregation orders resulting in an increase in the transportation program, and (5) an employee salary agreement tied to a cost-of-living index. In addition, Denver has become a racial minority school system and enrollment has declined. Steps taken to solve these problems have involved a more aggressive lobbying stature in the state legislature, resulting in recognition that the city does have some special needs. Teachers have voted to give 1 percent of their 5 percent salary increase back to schools to help relieve problems caused by class size, and efforts are being made to make the system so attractive that parents will want to return to the city. (Author/MLF)