This report is one of a series of statements relating to the Oregon Board of Education priorities for Oregon education. It first identifies the factors contributing to the financial problem and then proposes activities to (1) simplify the structure by which education finance operates, (2) stabilize financing of the education program, (3) systematize the management of the State's educational system, (4) stretch the available education dollars, and (5) support identification and use of additional sources of State level revenue. (Author/JF)