The distribution of state funding to school districts has a tremendous impact on student learning opportunities. State leaders juggle different priorities, tradeoffs and incentives when designing funding formulas with the goal of ensuring every student has the learning opportunities to succeed. This toolkit offers a strategic guide for reforming or redesigning state K-12 funding to ensure students and educators have the necessary resources to reach education goals. Explore five guiding principles for state leaders to strive toward and examples of what these principles look like in practice. A well-designed K-12 funding formula is transparent, student centered, adequate, fair and sustainable.