A NEW FORMULA FOR MEASURING STATE EFFORT TO SUPPORT PUBLIC EDUCATION WAS PRESENTED IN THIS PAPER. THE MEASURE USED FOR EXPENDITURES RELATED TO CURRENT EXPENDITURES OF PUBLIC ELEMENTARY AND SECONDARY SCHOOLS FOR GENERAL CONTROL, INSTRUCTIONAL SERVICE, OPERATION, MAINTENANCE, AND FIXED CHARGES AT STATE, INTERMEDIATE, AND LOCAL LEVELS OF ADMINISTRATION. PERSONAL INCOME, DEFINED AS THE MEASURE OF CURRENT INCOME RECEIVED FROM ALL SOURCES DURING THE CALENDAR YEAR BY THE RESIDENTS OF EACH STATE, WAS USED FOR FISCAL ABILITY. THREE DIFFERENT MEASURES FOR ALLOCATION FACTORS WERE USED FOR EACH STATE--(1) A CONSTANT EQUAL TO THE NATIONAL AVERAGE PERCENT OF INCOME DEVOTED TO EDUCATION, (2) ASSUMED ALLOCATION PROPORTIONAL TO THE RATIO OF PUBLIC SCHOOL CHILDREN TO TOTAL POPULATION IN A STATE, AND (3) THEORETICAL DIVISION OF A STATE'S TOTAL FISCAL ABILITY BETWEEN SCHOOLS AND ALL OTHER PURPOSES (INCLUDING FEEDING, CLOTHING, AND HOUSING THE TOTAL POPULATION OF THE STATE) IN PROPORTION RESPECTIVELY TO PUBLIC SCHOOL ATTENDANCE AND TOTAL POPULATION. THE THREE MEASURES OF EFFORT OBTAINED FOR EACH STATE WERE ADJUSTED PROVIDING A NATIONAL AVERAGE INDEX OF "1" FOR EACH OF THE THREE INDEXES. INDEXES LARGER THAN 1 REVEALED THAT A STATE WAS EXERTING GREATER THAN THE NATIONAL AVERAGE AND CONVERSELY, INDEXES OF LESS THAN "1" INDICATED THAT A STATE WAS NOT EXERTING UP TO THE NATIONAL AVERAGE. THE RESULTS SHOWED THE MEASURES OF EFFORT VARY GREATLY ACCORDING TO THE DEFINITION OF EFFORT. THIS PAPER WAS PREPARED FOR THE ANNUAL MEETING OF THE COMMITTEE ON EDUCATIONAL FINANCE, NATIONAL EDUCATION ASSOCIATION (CHICAGO, APRIL 6, 1965). (HW)