By focusing attention on comparative state performance in educating students, the Wall Chart (State Education Statistics, 1983) forced policymakers to consider state differences in student populations and the consequences of these differences for the outcomes of state systems of education. This paper presents the results of a study that attempted to develop and refine the methodology for constructing a state education service requirements index and to develop alternative indices based on these methodologies. Two methodologies used to develop the indices are presented. The first involved a regression analysis which measured the effects of different student characteristics on student achievement. The second methodology involved the computation of indices based on the excess cost of educating children with special educational needs. Developed indices included: (1) base indices limited to three student characteristics: poverty, handicapping, and non-English-language background; and (2) comprehensive indices that included the three base characteristics and two additional characteristics: single-parent-family status, and mother's low educational attainment. Data were obtained from the 1980 Census and the Office of Special Education and Rehabilitation Services in the Department of Education. Both methodologies produced indices of state education service requirements that were consistent in their state rankings. (Author/PN)