In these times of reforming public education, considerable debate is being given to alternative schooling options. Many policymakers view school choice as a means of increasing parental influence of educational services and of reducing the control of government, professional administrators, and educators. These alternative schooling options have far-reaching impact beyond just the basis of satisfaction of participants. The impact of these school options must be based on what happens to the total public-school system, including how they change public-school enrollment patterns and what impact this may have on the fiscal needs of the public schools. Many state legislatures have enacted legislation that enables parents' choices of schooling for their children without consideration of the impact that these alternatives may have for the existing school-finance structure. These actions have occurred most notably in the passage and revision of legislation dealing with public-school finance, charter schools, home schools, choice enrollment, and vouchers. This paper examines some implications that state finance policy may have on the efforts to reform the traditional public-school system and to give greater freedom to alternative schooling options. (Author)