There are major disparities in spending and taxation among California school districts. Available resources per pupil bear little relationship to the willingness of local communities to support education or the educational task to be performed. In addition, the State school finance system forces districts to rely on local property tax bases for all support in excess of an inadequate, State-guaranteed minimum. The system also neglects differences in pupils' educational needs. Some reform alternatives are needed, such as (1) a redistribution of funds by changing State aid formulas and possibly by instituting a Statewide property tax, (2) the introduction of a variable matching formula to implement a policy of equal support for equal tax effort, and (3) the launching in all districts of full State financing to equalize per pupil support according to need. (Author)