Examines the conflict between efficiency and equity in public education finance. Considers district power equalization (DPE), a compromise approach that would require raising tax prices in wealthy districts and lowering them in poorer districts. Simulations for three states show that a "pure" DPE plan would reduce expenditure variances…

Factors to be considered when developing a new formula for financing public education in Connecticut are discussed in light of the Horton v. Meskill ruling, which declared Connecticut's financing method in violation of the state constitution. Formulas used by other states that may be applicable to Connecticut are also examined. (SF)