The major issues surrounding the financing of schools cluster in three areas: the use of public money in private and parochial schools, the sources and allocation of public school funds, and the ability to raise school taxes. Although the number of cases dealing with religion declined, there were cases concerning the use of public money to provide Comprehensive Employment Training Act workers, auxiliary services, and student transportation to sectarian and religious schools. The majority of the cases concerning the allocation of funds dealt with conflicts arising over the placement, treatment, and costs of the education of handicapped children. Cases arose in which parents initiated litigation to recover costs of placing their children in private institutions and in which a state sought to obtain the costs of treatment from parents who were able to pay. The tax cases frequently dealt with disputes over tax collection methods, assessments, elections, and the use of tax revenues. (Author/IRT)