Educational finance policies have such a critical influence on every educational service and program, on the national economy, on the welfare of individuals, and even on the welfare of the nation itself, that educational finance cannot be studied adequately in isolation from our total social system. Therefore, the authors have used the systems approach in presenting much of the present knowledge of educational finance and many of the major problems and issues in that area. This approach involves an extensive analysis of the economics of education and of the effect of education on the national economy. It implies utilization of the planning-programming-budgeting system or the educational resources management system. Modern fiscal policies for education require long-range educational planning, an essential component of this approach. The study of school finance and business management involves systems analysis and operation research to maximize educational return per unit of financial input. Both administrative policies and the structure of district organization must be appraised in terms of financial efficiency and effectiveness in providing needed educational services. The effects of alternative educational finance models on the equalization of educational opportunity and on equity to taxpayers must be given careful consideration. (Author)