This is the report of a finance review which examined long-standing inequities in education finance as well as current problems stemming from declining enrollment and sparse rural populations. An introduction provides the rationale for the review, along with the mandate set out by the Minister of Education, an overview of the organization and operation of the review, and the format. Chapter 2 addresses the underlying principles of education finance: student and taxpayer equity, accountability, local autonomy, and the need for balancing principles in an overall financing formula. Chapter 3 provides a brief description of education finance plans: foundation plans, percentage and power equalization plans, voucher schemes, and full provincial funding--with particular reference to Manitoba's preference for foundation programs. Chapter 4 examines the political, social, and economic context for the review, and the degree to which the current education support program is accepted. Chapter 5 provides the rationale and recommendations for government support of education: source of funds, disbursement of funds, governance. A summary of recommendations follows, covering these and other concerns such as compensatory education, vocational education, English as a Second Language, French, heritage languages, curricular materials, continuing education, small schools, transportation, capital, equalization, block grants, special revenue schools, and private schools. Ten appendixes provide supporting documentation for the report. (TE)