This paper addresses concerns with equity in education financing in Alberta, Canada. It describes the major issues involved in funding education and proposes alternative ways of addressing them. The issues are the following: (1) every student should have access to an education which meets his/her needs, but the costs of this education varies widely across the province; (2) there are significant inequities in the level of taxes paid by residential and non-residential taxpayers; and (3) school boards are increasingly dependent on local revenues and some do not want this local taxing power eroded. In addition to these issues there are five principles of education funding contained in Alberta's New School Act which must be considered in any new school finance plan. They are the following: (1) access to quality education; (2) equity; (3) flexibility; (4) responsiveness; and (5) accountability. Five new funding options are proposed in consideration of the issues and principles. Their advantages and disadvantages are presented. Statistical data are included in two appendices. (VM)