Over the past 30 years, states have assumed a greater role in financing education. The presumption of local control has been superseded by systems of state control. This shift in authority raises several critical questions. Chief among them is, "What effect has centralization of education financing had on the capacity of school districts to provide educational services?" Has increased state participation led to a more equitable, effective, accountable, or efficient system of education? The authors suggest that the question poses a false dilemma. Instead of questioning who should control resource decisions, we should ask, "What obstacles prevent better connections between real dollars and valuable resources for students?"