This paper seeks a plan for financing education in Ontario that minimizes the disruptive effects of declining enrollment and changing enrollment patterns, is sensitive to the limitation of resources, and provides clear channels of authority and responsibility between citizen and policy maker. The author considers the alternatives for placing the locus of policy-making authority, the sources of funding, and the question of whether taxing and spending of public funds should be fused or separated. He concludes that a new structure for the governance and financing of education is necessary and favors a plan in which local boards would be replaced by educational councils with specific powers delegated by the province. These councils would not have the power to tax and they would be identified with the operation of specific schools. The author also recommends discarding the grant plan that currently governs financing and suggests that education be funded out of the province's general revenues. (Author/WD)