In 1969, the governor made a series of recommendations to the Legislature and to the people of Michigan regarding changes in the method of funding elementary and secondary schools. The current system, which relies heavily on the local property tax, has produced sizable inequities of educational opportunity among the children of the State. Since several courts, both State and Federal, have questioned the constitutionality of similar systems of financing schools, a greater sense of urgency has surrounded the consideration of these recommendations. The proposals fall into the two major areas of (1) a constitutional amendment that would shift the reliance of school operational funding from the local property tax to a system of State taxation, and (2) a different system of allocating funds to local school districts that would better equalize educational opportunities for students. This report is a compilation of statements regarding these proposals. The document also includes the proposed constitutional amendment, draft legislation, a computer simulation of the distribution proposal impact, and an analysis by a nongovernmental agency. (Author)