ANALYSIS OF THE ETHNIC COMPOSITION AND POPULATION MOVEMENTS OF BUFFALO SHOW THAT IT IS A DEMOGRAPHICALLY DECLINING AND HIGHLY SEGREGATED CITY. FOR ANALYTICAL PURPOSES, THE CITY IS DIVIDED INTO THREE MAJOR AREAS--(1) AREA I, HIGH PERCENTAGE NEGRO, (2) AREA II, MIXED POPULATION, AND (3) AREA III, HIGH PERCENTAGE WHITE. SINCE SUBURBS AND A HIGH IN-MIGRATION OF NEGROES, THE NET RESULT BEING A DECLINE IN POPULATION AND AN INCREASED NEGRO CONCENTRATION IN AREA I. THIS RESIDENTIAL SEGREGATION PATTERN IS EXEMPLIFIED IN THE SCHOOLS. A LOW PERCENTAGE OF THE PUBLIC SCHOOLS ARE DEFINED AS UNSEGREGATED, AND THERE APPEARS TO BE LITTLE FORSEEABLE CHANGE IN THIS PATTERN DUE TO A GROWING PROPORTION OF PERSONS UNDER 14 YEARS OF AGE IN AREA I. AREA I IS RELATIVELY DEPRESSED WITH LOW FAMILY INCOMES, OCCUPATIONAL MIX, UNEMPLOYMENT PATTERNS, LOW EDUCATIONAL ATTAINMENT, AND POOR HOUSING. IN ALL OF THESE CATEGORIES AREA I IS INFERIOR TO AREA II, WHICH IN TURN IS INFERIOR TO AREA III. A COMPARISON BETWEEN BUFFALO AND THE REST OF ERIE COUNTY REVEALED THAT BUFFALO IS DECLINING DEMOGRAPHICALLY IN RELATION TO ITS SUBURBAN SURROUNDINGS. THE REPORT CONCLUDES THAT WITH NO SUBSTANTIAL CHANGE IN RESIDENTIAL AND PUBLIC SCHOOL POLICIES, THE PRESENT TRENDS ARE LIKELY TO CONTINUE, RESULTING IN A RACIALLY POLARIZED CITY. (HW)