Education is declared to be an investment in human capital. Reform in school finance systems is long overdue in many states, but much progress has been made, and will yet be made, due to far-reaching decisions in a number of relevant court cases in the 1970s. To provide practical guidelines and cost-effective decision-making techniques for handling day-to-day problems and long-term financial concerns, this text is presented. The development of school finance theory and practice is investigated in 17 chapters: (1) "The Economics of Education"; (2) "Financing Education Adequately"; (3) "Financing Education Equitably"; (4) "Sources of Local Revenue"; (5) "Local Control: A Threatened Tradition"; (6) "Education: A State Function"; (7) "Federal Interest in Education"; (8) "Early School Finance Systems"; (9) "School Finance Reform during the 1970s"; (10) "Post-Serrano School Finance Systems"; (11) "Public Funds and Nonpublic Schools"; (12) "Financing School Facilities"; (13) "Administering the School Budget"; (14) "Accounting and Auditing"; (15) "Property Management and Insurance"; (16) "Personnel Administration and School Finance"; and (17) "The Road Ahead in School Finance Reform." Each chapter includes pertinent figures and tables, a summary, assignment projects for classroom use, selected readings, and endnotes. An appendix outlining important federal programs is provided; an index completes the book. (WTH)