This study attempts to provide principles and strategies for improving the pro-blems of the educational expenditure of Taipei County through three approaches, which are theoretical analysis, investigative research, and comparative analysis. The specific aims of the present study are: (1)to explore the main trends of educational development in advanced coun-tries in recent years. (2)to find out employable principles in the area of educational expenditure. (3)to investigate the present state of educational development in Taipei County. (4)to investigate and analyze the problems of the educational expenditure in Taipei County, and adopt desirable strategies to solve them. This study includes three aspects: firstly, the main trends of educational develop-ment in advanced countries in recent years; secondly, review of employable principles. The following main recommendations are presented as a reference basis for solving the problems of the educational expenditure in Taipei County: 1.A long-term educational investment plan based on the facts of mathematical analysis in the area of educational expenditure should be made in order to allo-cate fund and apply it effectively. 2.The central government or Taiwan provincial government should subsidize the government of Taipei County with planned specific fund in order to carry out compulsory education. 3.The tripartite government should equally share the personnel expenditure of compulsory education. 4.Both the central government and Taiwan provincial government should provide the fund for purchasing and obtaining the land in order to set up new schools and buildings. 5.The subsidiary scheme of Taiwan provincial government for increasing the ex-penditure of compulsory education in all counties should be revised. 6.The tuition should be used for certain specific purposes in elementary and se-condary schools. 7.A plan for setting up a new school in the suburban area should be put into prac-tice. 8.The system of educational loan should be set up so as to provide sufficient educational finance, and the individual to undertake educational enterprise should be encouraged.