During the past several years, policymakers and practitioners have concentrated their energies on resolving equity/adequacy issues, reforming school tax structures, improving schools' efficiency and cost-effectiveness, developing school-based accountability, and exploring alternative cost-cutting and fundraising strategies. Total expenditures for public elementary and secondary education approached $336 billion for 2000-01, making education the largest single spending category in all the states. In late February 2001, 31 states reported revenues as being on target, but because of recession 11 states were instituting budget cuts. Trends in funding show slight increases in state support and slight decreases in local and intermediate support as states assume greater financial responsibility. Schools are spending an increasing proportion of their instructional budgets on special education. Although funding for educational technology increased with regard to hardware, technological support seems to be largely ignored. Districts are spending less money on facility maintenance and repair, and teachers' salaries are not keeping up with inflation. The following topics are discussed in their own sections: statistical overview, persistent funding disparities, major developments in school finance equity, new attention to outcomes and adequacy, improving efficiency and cost-effectiveness, school-level data-collection initiatives, cost-cutting trends, fundraising strategies, and future policy and research directions. (RT)