This study examined the state funding basis as evidenced in both the old Strayer-Haig-Mort formula and the local composite index formula in order to determine if the new formula has made any significant progress toward fiscal equalization. The results were not at all convincing in support of either formula. The new formula was conceived as a better means of equalizing funds, but, with all its special considerations (for instance, a no-loss provision), it appears not to have been completely successful. The only indicator that seems to be in support of the local composite index is that the smaller school divisions seem to have increased on a more consistent basis than the larger divisions. However, because the new formula uses a variety of indicators for wealth per pupil (property tax, sales tax, corporate utility values, and local income) whereas the old formula used only taxable property and corporate utility values, the local composite index formula seems to be somewhat better from a theoretical standpoint. (Author/IRT)