In 1973 the New Jersey Supreme Court ordered the legislature to define in operational terms the legislature's constitutional obligation to provide "a thorough and efficient system of free public schools for the instruction of all children in the state between the ages of five and eighteen years." It also ordered the legislature to develop a new funding system to ensure that each district would be enabled to meet the requirements of the system defined by the new legislation. Shortly after the Supreme Court had rendered its 1973 decision, the state of New Jersey initiated efforts to deal with the state's obligations to provide adequate school facilities for all children. One purpose of this paper is to describe the process and findings of the various studies that were conducted to determine the unmet school facility needs of the state. A new education law was passed by the legislature and accepted by the New Jersey Supreme Court in January, 1976. It contains a new state school aid formula, including a new method for providing state aid for facilities construction. Therefore, a second purpose of this report is to evaluate the extent to which the new systems of state aid have worked to reduce the facilities disparities noted by the courts. Finally, this paper examines how other states have met their school facility needs and recommends methods for New Jersey that can be more successful than the methods in current use. (Author/MLF)