This paper examines previous changes in school finance reform, makes some future projections about the direction finance reform might go, and indicates what strategies seem particulary effective. It begins at the Federal level by taking a look at the overall Federal budget picture and its implications for the Federal role. The author proposes that the Federal Government monitor expenditure disparities caused by differences in school district wealth rather than differences caused by free local choices of tax rates or differential funding for disadvantaged pupils. At the State level, the author sees that one fundamental factor in State school finance reform is that overall State treasuries remain very much in surplus. Trends in finance reform in the last 2 years indicate that: (1) States with the most thoroughgoing reform are for the most part those without large city school districts; (2) there is a lack of massive property tax relief in reform measures; and (3) State court suits have continued to be crucial to reform efforts. Specific reforms in certain States are discussed. Some school finance issues have made little progress because of no real good data on different costs of education for pupils with special needs; no linking of finance plans to accountability; unresolved adjustments in State formulas for big cities; a lack of information about the full impact of capacity equalization; and little empirical evidence to define or measure "local" control. (Author/DN)