In this report, the author analyzes the recent United States Supreme Court decision, compares it with the preceding California case, Serrano vs Priest, and predicts future changes in State school finance systems as a result of this case. The author traces the Court's reasoning for finding that there was no violation of the Equal Protection Clause of the 14th Amendment in Texas' method of school finance. He discusses the court's conclusion that no "suspect class" or "fundamental interest" was involved. The author suggests that there will continue to be challenges to State school finance systems, both in legislatures and in State courts. (JF)