This document presents findings of a General Accounting Office (GAO) study that reviewed the experiences of three states that had recently reformed their school-finance systems to make them more equitable. Case studies of Tennessee, Texas, and Minnesota were conducted. Methodology included a review of school finance documents and legislative challenges to the states' school-funding plans; analysis of data on state budgets, student demographics, and school-district funding levels; and interviews with 15 to 19 education officials and representatives from statewide education associations in each state. Officials reported that legislative solutions following legal challenges in all three states lessened disparities in terms of access to revenue, per-pupil spending levels, or educational opportunities. Poor districts were helped without harming the education programs in wealthy districts. In response to budgetary and political pressures, legislatures in each state included hold-harmless and win-win provisions. However, the solutions are sensitive to public sentiments about taxes and may be subject to change. Officials advised other states undertaking similar reforms to clearly define the equity goals of the school-finance system in terms of adequate learning resources or student performance standards; link school-finance reform to accountability; and include all stakeholders in the reform process. Three tables are included. Appendices contain methodological notes, a list of officials interviewed for the case studies, findings of each of the case studies, and GAO contacts and acknowledgments. (LMI)