This study investigated differences in per-pupil spending between districts with the greatest number of poor and minority students and those with the fewest poor and minority students. It analyzed a specially-constructed database containing demographic and finance data for over 15,000 school districts in 1999-00. The analysis included state and local revenues only and did not include federal dollars. Results indicated that districts serving the greatest number of poor students and the greatest number of minority students received less state and local money. While the national gap between high- and low-poverty districts was shrinking, it had increased significantly in nine states. In order to close these gaps, states must reduce reliance on local property taxes by assuming a greater share of overall school funding and heavily target poorer districts when distributing state tax revenues. (SM)