Efforts to compare the costs of exactly the same things in different geographic regions involve comparisons of the same "market basket" of goods in two geographic areas. Measuring cost differences in education, however, is difficult, since most of the costs are in personnel, rather than in supplies. This publication explains the differences between educational costs and expenditures, in the "unit price" of teachers, and differences over time in the level of inflation. It examines indices that can be used to make judgments for these differences in costs, and outlines a future plan of action to derive precise, stable, and accurate indices for school administrators and policymakers to use. Adjusting for regional cost-of-living differences is one of the challenges to producing a cost-of-education index. The other involves adjusting for cost-of-living differences over time. There are two primary goals for the future of Geographic Cost Adjustments: improve the index of cost variations as well as educate the public and policymakers about any progress that is made. The basic challenges are to make indices generalizable across different levels (local, state, and region), separate and distinguish influences that are controllable by the school, be careful of double counting when adding new adjustments, and address any political considerations. (Contains 9 pages of references.) (DFR)