A review of the property tax system of financing education in Ontario provides historical background for the consideration of alternative approaches to reform. The problem of declining enrollment lends a sense of immediacy to the discussion. The present system of finance is found to be unsatisfactory because of inequities in property assessment bases and increasing public dissatisfaction with the school system, which rises concurrently with the property taxes. Pupil enrollment, tax bases, relations between assessed and market values, taxes and grants per student, and effective tax rates all differ greatly from one locale to another within the province. Thus, the authors suggest that a flexible system is required that adapts to widely varying curcumstances without vitiating its basic principles. A study of the alternatives leads them to recommend serious consideration of a provincial takeover of school finance, a reformulation and simplification of the grant program, and a marginal restructuring of the present local tax system. (Author/WD)