This report examines comparative data on fiscal need factors critical in equitably financing public education and on factors with varying or unique implications for urban, suburban, and rural school systems in Tennessee. In analyzing the current operating expenditures for 1976-77, expenditures were divided into two components--instructional programs and noninstructional service programs--and converted to weighted pupil unit amounts. The measure of need for instructional expenses consists of four weighting factors--regular classes, vocational education classes, classes for the handicapped, and teacher training and experience. The study is limited to the critical financial factors that enter into the measure of educational need on the expenditure side. Numerous tables are included. (Author/IRT)