Equity must be viewed in terms of the pupils to be served in the schools, the citizens who support the schools, and general society which reaps the benefits from the public schools. Various sections of this pamphlet address themselves to the philosophical bases of the public schools, some of the directions provided by the courts, current financing programs, educational programs and services, revenue sources, and an analysis of alternative school finance programs. After examining alternative programs, the Commission recommends that government should seek to correct educational, social, cultural, and economic imbalances; and that it should promote social mobility. It also urges that States adequately define and fund educational programs to accommodate the varying educational needs of all children. A shift from reliance on property taxes as a means of funding to a reliance on personal income, corporate income, and sales taxes is also recommended. The Commission suggests that the role of the Federal Government consist of addressing problems of interstate equalization and special areas of federal interest. Within the State, the Commission recommends a combination system of financing that would draw on both State and local revenues. This combination is seen essentially as a foundation program supplemented with equalized local initiative. (JF)