Testimony concerning the proposed Fair Chance Act, a bill to ensure all children's chances for receiving a good education, is reported. Although the United States is spending a substantial amount to support its public schools, children are receiving a substantially unequal education, depending on the state, county, or municipality where they live. Under the proposed act, no state may receive federal funds from any Department of Education-administered program to support its public schools after January 1, 1996, unless the Secretary of Education certifies that public education funding in that state meets certain equalized funding standards. Concerning fair funding within states (Title I), the bill further proposes that the Secretary of Education shall annually review each state's method of financing its public elementary and secondary schools and certify all states meeting the proposed standards. Details are provided for review standards, state compliance, and alternative use of funds. Specifications for ensuring fair funding among states are also provided. Favorable testimony was given by Arthur E. Wise, director of the Center for the Study of the Teaching Profession, the Rand Corporation; Professor K. Forbis Jordan, Arizona State University; Bert T. Combs, former Kentucky Governor; Marilyn Morheuser, executive director of the Education Law Center (Newark, New Jersey); and Albert H. Kauffman, senior litigation attorney for the Mexican American Legal Defense and Educational Fund (San Antonio, Texas). Further documentation of school spending inequities appears in the appendices. (MLH)