Eight critical issues relevant to Kansas school finance are discussed in this report; issues include recent school finance litigation, assessment of the School District Equalization Act (SDEA), recommendations for improving the SDEA, validity of the power equalization models, measures of local district funding ability, mechanisms used by other states, plans for compression of tax rates used by other states, and recommendations for future action. A recommendation is made for the development of a fully funded foundation with local power options within the state ratio, tied to a price index. Thirteen tables and one figure are included. (LMI)