With regard to school finance legislation, 1994 was an active year with 13 cases decided and over 100 pieces of legislation passed. This paper provides a summary and analysis of state school-finance litigation and legislation for that calendar year. The first part summarizes and analyzes state school-finance court decisions; included is a table listing the state, date of the decision, court, case summary and reference, and the actions taken after the decision. Trends in court decisions are also described. The second section looks at state-school finance legislation; a series of tables in the summary list legislation by category, describe the content of the legislation, and provide the bill number. Most of the court cases centered on equity and adequacy of state funding, and state courts continued to differ on the acceptability of variations in expenditures based on wealth, primarily property wealth. A notable exception was the supreme court case in Arizona that overturned the funding system based on disparities in school facilities. School-finance legislation, of necessity, deals broadly with all aspects of state funding and so divides itself into many types of legislation. It appears that many of the legislative initiatives would necessitate increased levels of funding, and with states in better fiscal health in recent years, education advocates may feel optimistic. On the other hand, a number of states are considering tax rebates and/or tax cuts. Thirteen tables are included. Contains 11 references. (LMI)