The Texas Foundation School Program, popularly known as the Minimum Foundation Program (MFP), is a very complex approach to school finance. It provides basic assistance in three areas--minimum salaries, operating allowances, and transportation--and additional assistance in two others--vocational education and special education. The state pays roughly 80% of the MFP costs. On the whole, the Texas system favors smaller districts, especially those under 500 average daily attendance, even though district wealth is generally an inverse function of district size. The major sources of the inequities have to do with how enrichment monies for operating expenses are provided, how capital outlay monies are raised, and how foundation program current expense allotments are determined. The manner in which local fund assignment is calculated is also weak but it is not as large a problem as the other three. An equitable system must take into consideration district wealth, district family income, local school taxes, local municipal taxes, different common costs of education, the concentration of students with special needs, and different transportation needs. (Author/IRT)