Among the financial problems facing urban schools are high expenditures per pupil required to provide educational services in urban schools enrolling a disproportionately high percentage of students with exceptional educational needs. Special programs are more costly than regular programs. City schools are frequently confronted with expenditures for noninstruction related services, for example, loss from vandalism and theft and higher attendance services costs. The costs of school sites, operation and maintenance are higher in densely populated areas. Wage scales are typically higher than rural or suburban areas. Although the ability of cities to generate revenue for school support is at least as great as that of most other areas, city schools are supported from the same tax base as a multiplicity of municipal services. Planning to meet the financial needs of urban schools requires not only data on present conditions but also awareness of emerging trends and their implications. Demographic trends are of particular significance. Schools need financing which is both reasonably equitable to taxpayers and distributes funds to provide reasonably equal educational opportunity for students. (Author/MK)