SPARSITY OF POPULATION, A MIGRATORY POPULATION, AND AN ETHNIC POPULATION INFLUENCE THE RISING COSTS OF RURAL EDUCATION. AN IMPORTANT GOAL IN FINANCING RURAL EDUCATION IS TO PROVIDE LOCAL SCHOOL BOARDS WITH THE FLEXIBILITY NECESSARY TO MEET ANY FINANCIAL NEEDS THAT ARISE. LOCAL SCHOOL SUPPORT COMES MAINLY FROM PROPERTY TAX, STATE SCHOOL SUPPORT FROM REVENUE ON SALES AND INCOME TAXES, AND FEDERAL SUPPORT FROM INCOME TAX REVENUE. STATES ALLOCATE SUPPORT TO LOCAL SCHOOLS BY GRANTING A GIVEN AMOUNT PER PUPIL OR PER CLASSROOM FOR ALL SCHOOL PURPOSES, BY BASING THE GRANT ON THE WEALTH OF THE LOCAL SCHOOL DISTRICT, AND BY BASING THE GRANT ON A FIXED SUM FOR ALL SCHOOL DISTRICTS. STATE AID SYSTEMS CONSIST OF VARIOUS COMBINATIONS OF THESE PRINCIPLES. ADJUSTMENT IN STATE AID FOR SPARSITY OF SCHOOL POPULATION, AID FOR TRANSPORTATION, AND AID FOR BUILDINGS CAN ALL BE ACCOMMODATED WITHIN THIS FRAMEWORK. LOCAL SCHOOL BOARDS SHOULD HAVE THE DECISION-MAKING POWER IN REGARD TO THE SCHOOL PROGRAM BACKED BY THE PROMISE OF SUFFICIENT FINANCIAL SUPPORT TO PUT THE PROGRAM INTO PRACTICE.