This digest, which is based primarily on the 1989 ERIC/CRESS monograph entitled "Achievement of Equity in Capital Outlay Financing: A Policy Analysis for the States," by D. Thompson G. Stewart, D. Honeyman, and R. Wood, addresses possible solutions to the emerging problem of capital outlay financing, with special attention to facilities…

State policies greatly affect the decisions rural districts make about building or renovating school facilities. State, federal, and local mechanisms for funding school facilities are briefly described. Some states require a specific percentage of growth or decline in student population or a minimum number of students as a prerequisite for…