To provoke public discussion about the role state aid should play in Vermont public education and to make a case for a state aid system structured on the broad principles of equal opportunity, fair tax burdens, and adequate funding levels, this booklet examines Vermont's system of school finance, attempting to highlight its history and its present strengths and weaknesses. The opening pages include a preface, a list of five basic truths about Vermont school finance, and an introduction. The first section, "Does State Aid Make a Difference?", is illustrated with several graphs and figures. Other sections discuss the history of state aid in Vermont, student equity and fair tax burdens, and principles to guide state aid reform. An appendix provides an explanation of how Vermont's present state aid formula works. (DCS)