Outlines one approach for assessing and measuring the differences in the costs of education services and reports the results of an application of this approach to data for the state of California. (Author/IRT)

This paper outlines an approach for adjusting state aid for differences in educational costs. The approach focuses on determinants of the variation in the prices of school inputs such as cost of heating fuel, ability of the area to attract teachers, and needs for student transportation. The system attempts to isolate that component of the…

This paper provides a clarification of two factors--the differences in pupil need (as reflected by the proportion of disadvantaged or handicapped pupils in a district) and the differences in the prices of school inputs across districts--that affects the cost of educational services and a conceptual framework that may be useful in making welfare…

Based on estimates of differences in costs for school personnel and transportation in Missouri school districts, a cost-of-education index is computed, patterns of cost variation examined, and the impact of state aid allocations determined. Some conclusions are drawn as to implementing a cost index as part of school finance policy. (MF)