The reform of education funding systems to achieve greater equity and adequacy is an ongoing struggle in many states. Because funding of public elementary and secondary education is constitutionally a state responsibility, the struggle plays out largely in state legislatures. At the same time, education finance reform does not take place in a vacuum. The composition of state legislatures is deeply affected by voter preferences as expressed in elections and by economic conditions in individual states, as well as those at the national and even international levels. In addition, state courts have the potential to push reluctant legislatures toward school finance reform even with the current fiscal conditions. This article analyzes recent economic, fiscal, governmental, and political factors in order to assess the prospects for meaningful education finance reform at the state level. (Contains 87 footnotes, 1 figure and 5 tables.)