The purpose of this paper is to provide information regarding the financing of Georgia school facilities in the past, the current method of financing needed school facilities, and possible alternatives for providing the financing needed for school facilities in the future. The methods used and the level of state funding for school facilities in other states allow a comparison of Georgia's Capital Outlay Program to the capital outlay programs available in other states. The responsibility for financing school facilities in Georgia has been shared by the state and local boards of education, using both state and local revenue sources. An examination of the appropriate balance between state and local obligation for capital expenses is a focus of this paper. Additionally, since local school systems vary in their ability to finance school facilities with local revenue sources, alternative formulas are considered for taking that variation into account in the distribution of state capital outlay funds. (Appendices contain data tables and formulas.) (EV)