This report reviews the effects of recent court cases that struck down existing methods of school finance and presents a detailed discussion of the case Demetrio P. Rodriquez et al vs San Antonio Independent School District et al. The report gives the factual background of the case, states the issue, presents the court's decision, and sets forth the rationale behind the decision. The report notes that the Texas Legislature is currently being called upon to establish a school financing situation in keeping with the equal protection provisions of United States and of Texas Constitutions. (JF)