This paper presents the results of an exploratory study of the process of mobilizing and allocating resources for desegregation in large cities. Examined were the effects of budgetary constraints on school desegregation and desegregation impact on educational finance. Four urban school districts were selected for site reports. Section one of this study reviews the literature pertinent to the conceptualization of the research questions. Section two reviews and discusses methodological aspects of the study. Section three describes the findings in the school districts selected for study. A concluding section presents summary observations about relationships between budgets and desegregation. Presented in the site reports are: (1) an historical overview and assessment of current financial status; (2) issues related to school closing and facilities plans; (3) issues related to the funding of magnet schools, staff development, multicultural curricula, and other programs related to desegregation; and (4) funding needs in the areas of transportation, safety and security, and school-community relations. This paper suggests that the broader political, economic, and legal ramifications of desegregation need to be considered in finance reform and policy formation. Also emphasized is the importance of communication among school boards, State and Federal legislatures, and individual school officials in the development of financial policies related to school desegregation. (Author/ML)