The U.S. Department of Education has produced a national educational technology plan, calling for the placement of high-quality computers--one for every student-- in U.S. schools by the year 2000. Strategies for meeting the plan's funding challenges are the focus of this document. The report provides state and local policy makers some tools and pointers for thinking about their educational technology plans and for developing comprehensive strategies for funding those plans. The first chapter explores the promises of educational technology, examines cost estimates for placing educational technology in all the nation's schools, and summarizes an investment strategy for financing educational technology. Chapter 2 details some investment paradigms, laying out for state and district policy makers a systematic method of thinking about the costs of educational technology. Different funding strategies are detailed in chapter 3--strategies that feature funding mechanisms familiar to those in the public sector. The report recommends that states consider taking responsibility for the initial financial outlays required to implement district educational technology plans, use long-term financing to support training costs, prioritize technology line items in district budgets, and incorporate a 5-year planning strategy. (RJM)