During the 1993-94 school year, New York implemented major reforms in school finance. This paper describes the proposed 1994-95 school funding system, with a focus on the role of basic aid and changes from the previous year. The first section describes the components and accompanying formulas for the basic aid program and then highlights the major categorical programs. At first glance, New York's education funding system appears equitable; however, closer scrutiny reveals serious defects in its infrastructure. A conclusion is that the reformed finance system has created more problems with regard to equity and efficiency for students and taxpayers than it has solved. First, the already complex system has been made more complex to administer and assess. Second, the "reformed" system preserves some of the most serious defects of the former funding system, such as the property tax cap (capped at 117% of the state average), basic aid in the form of a flat grant, and the "hold harmless" provisions that guarantee a school district the same amount of aid from year to year regardless of qualification. Finally, there remains an overabundance of categorical aid programs with meager funding. Seven tables are included. Appendices contain statistics on supplemental support aid and high tax aid for the 1992-93 school year. (LMI)