We propose a cost-sharing arrangement for years three, four and five of Common Knowledge: Pittsburgh that is consistent with the idea of creating an Urban Research Laboratory within the Pittsburgh Public Schools. Schools selected as CK:P sites will provide user devices for students and half of the user devices for the teachers working on the exemplary project at that site. The schools will also provide premise wiring for all the devices used in the project. After a year, the schools will assume responsibility for the cost of maintenance and connectivity. These funds will flow through new mechanisms that the school district is setting up for site-based budgeting. CK:P will provide the other half of the teachers' user devices, Internet Information Servers, Compute Servers, routers and initial connectivity. CK:P will also provide hardware for its central and beta sites, and a modem pool for access from outside the schools. In the formal budget a portion of the required hardware is presumed to come from vendor donations and supplemental grants, consistent with our experience in the first two years of CK:P. The rationale behind this split is that the technology associated with user devices and premise wiring is reasonably stable, with standard commercial offerings being well-matched to the needs of the project. The same cannot be said about servers, although this is an area of rapid development for vendors seeking to serve the education market. Similarly, connectivity options are very much in flux, and more research is required to arrive at the best option for any given school site. The school district's contribution to hardware used in the Urban Research Laboratory will be phased in at the same rate as the district's implementation of its Strategic Plan. The school Board is expected to take action on the completed Plan sometime this fall. At that time decisions will be made on the funding mechanism for the activities that will be undertaken as part of the Plan. In particular the cost-sharing arrangement proposed here will be ratified. Present estimates point to a start date of September, 1995, which will fit perfectly with the first classroom activities of the present proposal. If there are delays in the district's implementation schedule, funding from private foundations will be sought to allow the present project to remain on schedule. Consistent with the rapid expansion of networking activities in the Pittsburgh Public Schools, the in-kind personnel contribution of the school district will increase significantly. There will be a 1 FTE contributed effort (representing a 10 effort on the part of each of ten teachers) at each new or expanded CK:P site, for a total of 9 FTE's a year. One Project Teacher will also be supported by the school district for the three years of the proposed grant renewal.