Fiscal equity and taxation equity in educational finance have been key issues in the United States and Canada over the past 2 decades. Part 1 describes the Province of Alberta's search for a solution to fiscal and taxation equity by looking at the education funding system. The growing disparities in educational resources available to school authorities in the province are documented with the aid of graphs, tables, and charts. Part 2 examines the following four alternatives for achieving fiscal and taxation equity and also their impact on provincial and local funding: (1) full provincial funding of education; (2) provincial pooling on nonresidential property assessment; (3) modifications to the fiscal equity grant; and (4) power equaling of the School Foundation Program Fund instructional grants. Basic features of each alternative are described, and an assessment of the adequacy of each alternative on the basis of 10 criteria is summarized. Part 3 describes a model for achieving fiscal and taxation equity, the Educational Trust Fund, that addresses the inadequacies of the four alternatives. The purpose, principles, operating guidelines, and major elements of the fund are given and the impacts on the educational system are summarized. Appended are demographic and statistical data of the Alberta school authorities. (RR)