The three papers in this volume describe exploratory efforts to adjust state aid to local school districts so as to reflect differences in local costs unrelated to school program content. Each study is limited to an analysis of relevant data for one of the three states considered--Michigan, California, and Florida. The underlying assumption is that one dollar in state aid or other revenue does not purchase the same amount of educational service throughout a state because of differences in local prices. The problem addressed is, can states adjust educational aid for local cost differences? The studies are technical as they center around theoretical and statistical analysis for selecting the most reliable variables for which data are available and which are associated with interdistrict differences, primarily teacher salaries. One major problem is in determining which district features are supply-related variables and which are demand-related. Another problem concerns the amount of variation in prices paid that can be traced to features or variables included in the analyses. (Author/IRT)