A revision of a report introduced as evidence in the school finance case Levittown v. Nyquist, this report analyzes the way educational revenues are raised and distributed in New York State and demonstrates the impact of these methods on educational services. The study was based on 1974-75 official New York State data and utilized analytic procedures used by the State Education Department in preparing its financial reports. Overall findings indicate that there is a wide range of property valuation per pupil among districts of the state, that expenditures per pupil vary directly with property value differentials, that state aid fails to offset that pattern, and that the result is a systematic discrimination in the educational opportunity provided to the public school pupils of New York State. (Author/JM)