The educational achievement distribution of Israeli students is characterized by a low level of achievement with a wide achievement gap between high and low achievers compared with the Organisation for Economic Co-operation and Development (OECD average. In fact, Israeli student achievement is characterized by the widest gap among the OECD countries. Furthermore, student achievement is unlikely to improve or the gap narrow since the current reforms implemented diminished many of the compensating equitable elements that were previously more dominant in Israeli school finance policy. School funding in Israel has taken on a new direction, emphasizing "adequate" (interpreted as equal) funding for schools. This funding principle is mostly based on student numbers rather than on student needs, and thus departs from the previous equitable allocation. This reform is likely to lead to greater vertical and horizontal disparities and to an unfortunate widening of the achievement gap, an outcome that contradicts declared policy objectives and societal needs. Endnotes are provided.