The Oregon Quality Education Model (QEM) was developed by the state to identify the fundamental requirements and costs for a quality education that meets Oregon's academic standards. It will determine the funding of Oregon schools. Among the assumptions upon which the QEM is built were that elementary school enrollment is 340 students, middle school enrollment is 500, high school enrollment is 1,000, and schools are close to an urbanized area. In this white paper, the QEM is applied to schools with characteristics significantly different from those assumptions. Data are presented showing how much more education costs in such schools and where those costs are centered. Findings are used to generate recommendations for policymakers on how to assure equity of services for small, rural schools. A review of the QEM funding scheme and the formula that weights the student count to offset additional costs for small schools yields the following recommendations: "small" must be redefined, a middle school element must be created, centralized services must be reviewed for districts with low enrollment, weighting must be modified to reflect QEM cost elements, and funding levels must be aligned with Ballot Measure 1. In addition, some protection is recommended to prevent spending of education dollars on student transportation in sparsely populated school districts. A separate revenue stream may enable remote school districts to access infrastructure commonly available in urban areas. (TD)