The partial financing of New York State's public schools with a state-mandated tax coupled with state aid based upon county or regional wealth rather than local district wealth would provide greater equalization of both revenues and expenditures of school districts than does the present law. A comparable increase in state aid appropriations under district formulas of the present type would fail to provide such improvements in equalization. Of three alternative plans examined by an expanded tax base study group, none would completely eliminate the fiscal disadvantages of poorer districts, but all would provide for substantial improvements. The greatest equalization would occur under a plan providing a statewide foundation program based on a state-mandated property tax. This report presents an analysis of the financial equity problem in New York, a summary of efforts to provide equitable education in the state during the last two centuries, a description of the methodology used in studying the possible effects of tax base expansion, and a discussion of the findings concerning each of the three alternative plans explored. (Author/PGD)