Despite the New Jersey Public School Education Act of 1975, Jersey City remains one of the poorest municipalities in New Jersey in terms of per capita property wealth, and this is having a negative effect on its educational system. Even though the new law increased State aid to public education, conditions in Jersey City have worsened. Educational spending has fallen below the State average, taxes have skyrocketed above the State average, and pupil achievement levels are among the lowest in the State. The school system, despite being overburdened with large numbers of special needs pupils, will probably continue to be a low spending, high need system. Educational spending will continue to be limited by the demands that funding of essential municipal services make on the city's limited tax base. Pupil performance may get worse rather than better. In order to rectify this situation, the school finance provisions in the Public School Education Act of 1975 will have to be replaced by a more equitable and adequate formula to provide the Jersey City educational system with sufficient fiscal resources. In addition, key participants will have to put aside "politics" and focus their efforts on meeting the needs of Jersey City's public school pupils if educational reform is to become a reality. (Author/EB)