Although New York State's provisions for funding public education are among the best in the nation, improvements are needed in the state aid program. In this study, school district data on expenditures and wealth were analyzed and evaluated. Two direct causes of the substantial inequalities among school district services in New York are the operating aid formula as a whole and the dependence of the state's 705 districts on property tax for local revenues. In addition to the effect of the formula as a whole on the expenditure gap, certain specific features of the formula contribute directly to the increasing gap between rich and poor districts. These features include the flat grant provision, the save harmless provision, and the low level of the foundation program. The use of certain variables in all the current New York state aid formulas creates complications, inaccuracies, and distortions in aid, some of which are closely related to wealth and further tend to increase the expenditure gap. Transportation aid as a whole is unequalized, complicated, subject to manipulation, probably requires more paperwork than all other state aids combined, and does not provide sufficient incentives for economical operation. (Author/JM)