In 1994 Arkansas's school-finance system was declared unconstitutional. A compromise plan was drawn up during the following year to appease both the state legislature and the governor. This paper discusses the confusing and contradictory aspects of three pieces of the state's school-finance legislation: Act 916, Act 917, and the Biennial Appropriations bill. The paper focuses on problems and inconsistencies in the laws, including funding priorities, incentive funding, the use of miscellaneous funds, rewards for debt, spending of Additional Base Funding, and the use of real dollars. Finally, Act 917 violates the concept of vertical equity and places the constitutionality of the new law in jeopardy. (LMI)