One of a state's primary responsibilities is to divvy up the public funds for K-12 schooling. In each state, a set of finance policies determines how the state and local funds are apportioned so that districts and other providers can then apply them to schools and classrooms. Different states use a host of variables and formulas to determine how much each district and school receives. Some leaders have come to realize that allocation formulas have big implications for whether a state's education system promotes or inhibits increased productivity in schools. With many states seeing some black in their balance sheets after years of highly constrained state funding, and districts asking for a share of the new money, forward-thinking state leaders are calling for something in return--namely, that districts and schools make sure the money does more to improve student outcomes. This focus on getting a greater return on funds has implications not just for districts but also for states. To get better outcomes for the money--an imperative given today's budget strictures and urgency for better student results--districts will have to use funds differently going forward. Student-based allocation, also known as weighted student funding, where funds are attached to each student and move with students wherever they go to school, provides the most equitable, efficient, and flexible path toward increased productivity. This brief explains why it is a good idea to allocate resources on the basis of students, and measures several states' progress toward doing so. [An earlier version of this brief was published in 2014.]