This report is intended for use by the Alaska Department of Education and other interested individuals in defining "basic need" as it relates to Alaska's Public School Foundation Program. The report is not intended to define basic need, but rather to present possible ways to define the term. It is based on ideas and suggestions from a special session of the Alaska State Board of Education, as well as from school board members, school superintendents, and other participants in four regional school finance workshops. The report compiles and summarizes those ideas and analyzes the factors that contribute to basic need determination. It presents information in sequential order about basic need and about various approaches, bases, and options for consideration by individual readers, depending on their experience with the subject. The "Option Review Worksheet" allows readers to record their reactions to the options offered and to mail them to the Alaska Department of Education. (Author/JG)