For the average school district, state funding is now higher than local funding, with unknown effects on per pupil spending. Previous studies in individual states do not agree on the direction and magnitude of the stimulative effect of state funding. This paper analyzes data from the 1989-90 United States Bureau of the Census report, "Public Education Finances," which provides financial information on school districts across the country. The study seeks to determine the magnitude and variation of school district spending as a result of differences in the contribution of state revenue. Findings indicate that both the southern and western regions of the United States have about the same level of state support. Once region and size were controlled, the type of school-district governance had no significant effect on expenditure per pupil. The percentage of state aid, once region and size were taken into account, explains about one-third of school-district spending per pupil. The effect of state aid has slightly negative consequences for per-pupil spending. However, no information was available on school-district wealth. Five tables and one figure are included. (LMI)