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This document contains recommendations for changes in the Texas system of educational finance to improve educational opportunity for Mexican Americans and African Americans. The report examines alternative methods of finance, focusing on methods for improving the existing property tax system. The authors recommend that the State (1) supervise and control assessment of property; (2) assume the revenue-raising function for public elementary and secondary education; (3) enact personal income and corporate profits taxes; (4) raise its level of per pupil expenditure; and (5) grant aid on the basis of a child's need.