Although New York State now has several educational expenditure controls, more are needed. Currently, the city districts have constitutional tax limitations, while in the independent districts the voters exercise control over expenditures. Nevertheless, the wide differences among school districts of unequal wealth are growing. There are two basic purposes for expenditure controls in New York State: to decrease the expenditure gap between rich and poor districts and to restrain increases in operating expenditures in the local districts and thus provide property tax relief. Proposed expenditure controls take the form of expenditure limitations or state aid formulas. Expenditure limitations may be simple dollar limitations or tax limitations. In New Jersey, the budget cap system has kept expenditures down in a number of school districts. The purpose of state aid formulas is to narrow the expenditure gap between rich and poor districts. State aid formulas might take the form of power equalization plans, full state funding, or the Oregon type of foundation plan. No one step or method alone can satisfactorily decrease the expenditure gap and restrain increases in local operating costs. Both a system of expenditure limitations and a revised or new basic state aid formula are needed. (Author/JM)