Court-imposed school finance equalization and tax limitation measures in California have created a centralized system of school finance. Political tensions and conflict that have arisen from this centralized control are discussed, with reference to the Serrano mandate and categorical funding. (SLD)

Recent national information is presented on the relationships among school district poverty, local fiscal needs and capacities, and Chapter 1 allocation levels. Focus is on assessing how the relationship between poverty and local fiscal capacity affects a school district's state/local revenue base. Targeting federal compensatory aid correctly is…