In 1989, federal appellate courts ruled on issues regarding a state's role in financing a court-ordered desegregation plan, and the use of federal funds for vocational rehabilitation and Title I programs. State supreme courts decided on the constitutionality of four states' school financing schemes and, in a fifth state, on distribution of federal impact aid funds. School tax cases concerned the use of revenues for unused vacation pay and salaries of assistant tax assessors. Cases discussed in this chapter fall under three major topics: (1) public funds for private schools; (2) sources and allocations of public school funds; and (3) school tax issues, including tuition, tax assessment and collection, tax exemptions and deductions, tax revenue disbursement, bond issuance, and delinquent school taxes. (MLF)