Reviews major issues surrounding funding of Nebraska's public schools and presents an alternative funding system sustaining the goals of local control, tax equity, and flexibility for program quality. The new formula would add an economic factor to the weighting of pupils and alow local tax flexibility for districts losing state funding. (MLH)

Citizens in rural Nebraska filed a lawsuit challenging the reliance on local property taxes for school funding that has led to inequities between rural and urban schools. One answer may be to give smaller school districts more money through a state system of taxation and equalization aid to improve school standards. (LP)