In statehouses across the United States, policymakers annually debate how best to fund public education and how best to distribute those funds. The complexity of school finance issues facing state legislators and policymakers, however, can be daunting. To provide greater clarity and reliable information, this report offers guidance about how to create well-balanced, equitable, and efficient school finance systems focused on ensuring meaningful educational opportunities for all students. Substantial and growing research shows that money, particularly when well spent, leads to improved student performance and lifetime outcomes, especially for underserved students. The costs for failing to adequately and equitably educate all children are high for states. A cost analysis from 2007 found that a student who does not graduate from high school costs the economy approximately $240,000 over his or her lifetime in terms of lower tax contributions, higher reliance on Medicaid, higher rates of criminal activity, and higher reliance on welfare. In contrast, a high school graduate earns an estimated $630,000 more over a lifetime compared to a student who drops out. With inflation, these increased earnings would be even higher today--reaching about $765,000 per high school graduate. Creating a strong, equitable school finance system is a challenging but achievable task. This report includes a discussion of two critical foundational steps for developing a high-quality, equitable, and efficient school finance system; describes the essential building blocks used for designing that system; and includes a brief overview of three states that serve as examples for creating more equitable, high-quality school finance systems. [For the policy brief, see ED606465.]