This paper describes the processes and methodology used in a 3-year study of the Kentucky Foundation Program--a body of related Kentucky revised statutes which directs the amount and flow of State aid for public education in the State. A technical committee, a research committee, a citizens advisory council, and local study committees examined issues of educational allotment procedures, required local tax effort, capital outlay, cost of delivery education, variation in program cost, school district productivity, pupil transportation, school district organization, extended school year, school food service, salaries, and staffing patterns. Final recommendations to the legislature for changes in the methods of school finance were made in the areas of educational allotment procedure, required local tax effort, revenue for public schools, teachers' salaries, capital outlay and debt service, transportation, school district organization, extended school year, and accountability. The paper describes the defects and strengths of the finance study, and concludes with the legislative proposal for a revised foundation program for Kentucky. (Author/DN)