This report updates a 1985 research study prepared for the New York State Regents Task Force on Education and Economic Development. Average per pupil expenditures in 1984-85 were analyzed for 13 expense categories among 3 groups of school districts in New York State: (1) the New York City suburban counties; (2) the "Big Five" cities (New York City, Buffalo, Rochester, Syracuse, and Yonkers); and (3) the rest of the state. Major expenditure variations were found to exist among the 3 groups in 4 of the 13 expense categories: instruction (which includes teacher salaries); undistributed expenditures (which includes retirement and fringe benefits); transportation expenditures per pupil transported; and special aid fund expenditures. Further analysis of instructional expenditures showed a consistent pattern of variation among the groups concerning teacher salaries and pupil-staff ratios. Group I (New York City suburban counties) had the highest average total expenditures per pupil of the three groups and tended to have higher expenditures per pupil for almost every category analyzed, including instructional costs, undistributed expenditures, and operation and maintenance of plant. Group II (the "Big Five") incurred the greatest expenditures for transportation and federal aid. Five tables and three charts are provided to portray these statistical comparisons. (TE)