There were no United States Supreme Court decisions in 1987 on either public or private school finance. Cases discussed in this chapter fall under three major topics: (1) public funds for private schools; (2) sources and allocations of public school funds; and (3) school tax issues. Federal appellate court cases included decisions on the constitutionality of a state's school finance law, federal reimbursement for state expenses used for the education of handicapped children, and refunds of misspent and overallocated federal grant funds. State courts litigated cases concerning disputed state aid calculations, special education funding, and fees for school bus transportation. School tax cases dealt with the use of school tax bases for noneducational purposes, bond referenda, tax exemptions, tax delinquency, the use of revenue, and conflicts of interest in public school funding decisions. Finally, one state supreme court advisory opinion considered the use of public funds for private schools. (MLF)