Issues in public school finance are discussed in this research monograph, with an emphasis on Texas. Chapter 1 provides a national historical overview, examining the changing definition of equality. The second chapter examines equity challenges in the courts, specifically, two major types of constitutional issues: (1) equal protection clauses of state constitutions and the issue of education as a fundamental right; and (2) violation of the education articles of state constitutions. Issues in measuring equity are addressed in the third chapter, which analyzes six basic finance plans, vertical and horizontal measures, and methods of data analysis. The final chapter discusses the equity situation in Texas, which is complicated by new legislation mandates and economic decline. A conclusion is that school finance reform efforts often fail due to lack of clearly defined goals and consensus. The recommendation is made for Texas to develop goals before policy formation. Five tables are included and 51 court cases are cited. (65 references) (LMI)