A study employing a traditional equity framework was used to calculate the equity of Texas' school-finance structure. Horizontal and vertical equity as well as fiscal neutrality are used as principles in the study. Data on school-district enrollments, tax assessments, and state revenues from the Resource Planning Office of the Texas Education Agency were used in the study. Results show reductions in revenue apportioned across districts because of the failure of the state to meet all of its funding commitments in 1991-92. Consequently, there is a significant deterioration in the equity of revenue distribution to school districts. Overall, except for a small number of districts and an even smaller number of students, Texas' school-finance structure is highly equitable. In conclusion, the school finance system established in Texas in response to state supreme court rulings in Edgewood Independent School District v. Kirby is the most equitable in the nation. The problem the state faces is how to fully fund the system that has been established, and without adequate funding, how to most equitably distribute the funds that are available. Even if such a mechanism can be established, there is no guarantee that the state can afford to fully implement the plan. (Contains 12 references.) (JPT)