In the Serrano decisions, the courts found California's method of financing schools to be unconstitutional and gave the state until September 1, 1980 to reduce wealth-based expenditure differences to substantially less than $100 per pupil. The courts found three features of the state's system to be particularly onerous--the failure of the state to correct for wealth-based disparities in expenditures, the failure to eliminate the basic aid grant which exacerbated wealth-related disparities, and the failure to prohibit permissive and/or voter tax-rate increases. The state was given a list of alternative funding mechanisms--full state funding, district reorganization, split tax rolls, vouchers, district power-equalization, and combinations of these. With the exception of a bill with a modest power-equalization feature, no reform bill has come close to passage because of its cost or because of resistance from politicians from districts that would be hurt by the reform. California has, however, taken positive steps. There have been three major methods of compliance--foundation program increases, permission for districts below the foundation level to increase their revenue rate until they reach the foundation level, and the power-equalization feature just passed. (Author/IRT)