Despite the fact that Paterson has a high level of documented need, the city is below the State and Passaic County averages for professional staff per 1000 weighted pupils and per pupil expenditures for instructional materials. Teacher salaries are among the lowest in the State and teacher morale is reputed to be low. Even after two years of financial reform, Paterson's position in relation to the State and County is actually worse. To the extent that educational quality is related to educational expenditures, fiscal conditions in the city have hurt the district. State aid is not in proportion to the level of educational need in Paterson. There is nothing bright about Paterson's immediate future. The current school finance law will remain in force until overturned or modified and local decisionmakers in the city are expected to continue to keep taxes and educational spending at the bare minimum. It is doubtful that student performance on statewide tests will improve appreciably, if at all, without drastic change in the district. (Author/EB)