This is the first in a series of monographs on current issues, problems, and practices in school administration. It is intended to provide experienced school administrators with a general review and a fresh look at various problems of school finance; school board members, State legislators, and members of Congress with a better understanding of the interrelated problems of school finance; and students of school finance and concerned laymen with an overview of the complexities of financing public education. The participation of local education agencies, State and Federal Government, and the electorate in educational finance are explored. Options and issues examined include foundation programs, equalized percentage grants, municipal overburden, program incentives, full State funding, and judicial review of programs. Eleven fundamental policies outline the role of the State and Federal Governments in school finance. The design of specific solutions to school finance problems are considered. The final chapter explains how State aid formulas work and how they can be adjusted to provide different degrees of equalization, different matching ratios, different percentage grants, and different tax rate requirements. The various components of State aid formulas and their functions are described and the combined effects of various types of component adjustment are illustrated. (Author/DN)