Since 5 of the 24 states receiving Johnson O'Malley (JOM) funds contained school districts that applied for JOM funds to meet basic operational expenses, the study was conducted to: assess state, local and federal funds going into the districts and for what purposes and programs; assess their impact on Indian students; assess the unmet financial and program needs; determine program duplication, its prime causitive factors, and remedies for any duplication; identify if there was sufficient funds in each program to meet the basic and supplemental needs of Indian children; identify and recommend needed remedies to insure sufficient funds for covering basic expenses. The budgets of the 25 districts that requested JOM basic support money for the 1974-75 school year were examined and analyzed. The finances of districts that asserted need and average districts within those states, and the financial levels of states that claimed need and those that did not were compared. This report summarizes the study; presents a brief history of JOM and school districts' financial needs; discusses what need is, who has it, and who defines it; and gives the recommendations for remedies and for JOM fund distribution. Appended are individual state summaries of state practices in public school finance and of individual revenue conditions in the school districts receiving JOM basic support; and tabular summaries of data referred to in the analysis and an explanation of the sources used for all data. (NQ)