The conceptual differences between the foundation program and educational needs approaches to the distribution of school funds are analyzed. Under the foundation approach, the state generally guarantees that, irrespective of local wealth, every child will have a minimum number of dollars expended on his education. In operation, the foundation program provides more educational resources to children in wealthy school districts and fewer resources to children in poor districts. A minimal definition of equality of educational opportunity is that the quality of a child's education should not depend upon where he happens to live. A recent California Supreme Court decision requires a rational educational finance scheme within the state. Several definitions of equality of educational opportunity are proposed: (1) minimum attainment, (2) leveling, (3) competition, (4) equal dollars per pupil, (5) maximum variance ratio, and (6) classification. (For related document, see Ed 058 473.) (Author/CK)