Part of a series on state education finance, this manual is intended to help Missouri educators, legislators, and citizens understand school finance reform by providing them with an overview of Missouri's financial aid to public elementary and secondary schools and by exploring selected issues in financial equity in education. The first chapter traces the legal history of school finance reform in the 1970s, noting the importance of Serrano v. Priest and other decisions. In chapter two the authors review Missouri's economy, its state and local governmental fiscal structure, and the concept of fiscal effort. Chapter three reports the level of state aid to Missouri schools and discusses the state's two formulas for achieving educational equity. The first is the minimum foundation formula, which guarantees each district a specific level of per-pupil expenditure; the second is the guaranteed tax base add-on, which augments state aid to districts that increase their tax effort to spend above the foundation amount. Exercises help the reader learn to compute both formulas. Finally, chapter four analyzes statewide disparities in school district expenditures, wealth, and tax effort and compares Missouri districts' wealth levels with their educational services. (Author/RW)