During the late 1990s, North Carolina's education finance mechanism--known as the Public School Fund (PSF)--was challenged in a series of litigation known as "Leandro v. State of North Carolina". Though the State Supreme Court's analyses left the state's finance mechanism unchanged, there remains to date no systematic evaluation of the fiscal efficacy of the PSF. As such, the purpose of this article is to examine empirically levels of horizontal and vertical fiscal equity generated by North Carolina's PSF from 1996-2006. Evidence examined shows that disparities in per-pupil funding--and ultimately access to supplemental educational services--are driven primarily by the ability of school districts to generate revenues from local taxing efforts. Two additional equity findings are of particular note: First, the original "Leandro" plaintiff's case is supported by a variety of analytical results. This leads to the second conclusion: The state's failure to align differences in vertical equity with education policy goals has constitutional and analytical implications that continue to raise serious questions regarding whether the state is meeting its mandate of ensuring equal opportunities to a sound basic, education for all North Carolina children. Therefore, if education finance equity, equality of educational opportunity, and the provision of a sound basic education are to remain policy goals, the ability to generate local revenue within the North Carolina education finance mechanism needs to be reconceptualized and restructured to alleviate fiscal inequities. And, discussions of prioritizing education achievement goals and efficient utilizations of said resources need to continue in earnest. (Contains 10 tables and 11 footnotes.)