The historical background of and barriers to K-12 school finance reform efforts in Michigan from 1968 to 1989 are reviewed in this report. Factors inhibiting school finance reform are cost of equalization, local control, out-of-formula school districts, and property tax stability. Other factors include de facto unavailability of state personal income tax, growth of educational lobbying groups, geographical differences, accountability, and competition for limited resources. Conclusions are that the twin objectives of property tax relief and reduction of per pupil disparity are incompatible and that barriers to implementation interrelate and affect one another. Due to the complexity and interrelatedness of the factors, ballot proposals, even with the support of various groups, will have difficulty in obtaining majority voter approval. Four tables present fiscal data. (LMI)