ABSTRACT: In New York State, public education funding comes from three sources: approximately four percent from federal sources, 44 percent from State formula aids and grants, and 52 percent from revenues raised locally. Local property taxes constitute close to 90 percent of local revenues. State aid for the public schools comes primarily from the State General Fund (approximately 90 percent) wherein the major revenue source is state taxes (e.g. income and sales); the balance (approximately ten percent) comes from a Special Revenue Fund account supported by lottery receipts. All net revenues from the state lottery are statutorily earmarked for school aid. In addition, the General Fund guarantees the level of lottery funds appropriated for education, making up any shortfall in lottery revenues. In 2000-01, approximately 56 percent of State aid to school districts will be unrestricted general aid. An estimated 15 percent will support the education of students with disabilities.