This paper traces the arguments and effects of both the Serrano and Rodriguez decisions and examines the state litigation and legislation spawned by them. The author notes that while the pace of school finance reform litigation has slowed, it has not halted altogether. It is now more tailored to the characteristics of the individual states involved. One of the problems with the earlier litigation efforts was that the only theory relied on was that of "fiscal neutrality." No single legal theory can apply to the school finance system of every state, as the nature of the finance system and the problems created by it differ from state to state as do state constitutions and statutes. A review of the 1972-73 legislative reforms indicates that reliance on the local property tax as a major source of education revenues has been lessened. One result of the Serrano-type litigation and of the many research studies that Serrano triggered is that many states have developed a greater sophistication with regard to the problems involved in school finance reform. States now look at a number of district characteristics, such as average personal income of a district, price or wage differentials, and the concentration of high need students, to determine the equity of the distribution of wealth. (Author/IRT)