Texas public school finance is undergoing reform in response to a state Supreme Court decision in Edgewood I.S.D. v. Kirby, that declared the school finance system in violation of the "efficient clause" of the state constitution. State aid has declined since 1984 due to state revenue constraints, reform mandates largely funded from local taxes, and state revenue system dependency on general sales taxes. Major proposals offered in a special legislative session generally involve: (1) improvement of fiscal neutrality through improved yield-for-effort plans; (2) equity targets involving at least 95 percent of the students in the equalized program; and (3) phase-in plans of 3 to 5 years. (59 references) (LMI)