This paper reviews the common issues that surround the school financing debate. These include; how much to spend; how equitable the spending; what revenue sources are desirable; and what level of government should be responsible for funding education. The paper describes the most common state programs designed to reduce school financing disparities including foundation programs, flat and matching grants, guaranteed tax base, cost equalizing, need equalizing and power equalizing. The paper also reviews the immediate education financing issues and current funding approaches used by the five states in the Seventh Federal Reserve District (Illinois, Indiana, Iowa, Michigan and Wisconsin).
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