Nationwide, the condition of school facilities is declining, yet funding for school renovation and new construction is difficult to obtain. As many states are now taking increasing responsibility for funding their educational facilities, options are being sought. This publication identifies the major decision points for policymakers addressing this issue and key questions to consider, and provides examples of strategies used by states across the country. Primary decision points examined are whether the condition and funding of school facilities need attention and the indicators supporting this, how state school facility needs can best be determined, and what the state and local role in paying for school facilities is and through what funding mechanisms. An Appendix lists how each state has funded its school facilities. (Contains 16 references.) (GR)