The impact of state reform initiatives on Kentucky public schools is described in this paper, with attention to financial and facility repercussions. State legislative action in 1985 established class size limitations and new certification programs, which necessitated reorganization of the middle schools. Following the Kentucky Supreme Court's 1990 decision that mandated the development of financial equity for public schools, the Kentucky Reform Act had a major impact on school governance and funding regulations. Compounding the situation was the failure of the state legislature and department of education to conduct adequate needs assessments and cost analyses prior to passage of each reform mandate. The demand for new facilities and funds generated strains on the public schools related to new construction, building approvals, and restructuring of the tax base. (LMI)