This document provides background information on educational finance in North Dakota. It examines the use of nonproperty factors in financing education, the quality of education, legal action in the state regarding education finance issues, and the effects of any 1993 North Dakota legislation on education finance. The paper first describes changes in the original foundation program that provided financial aid to local school districts and outlines "constitutionally objectionable features" of the school finance system. In March 1993, a proposal was offered by the Superintendent of Public Instruction to create educational equity for North Dakota students. Also described are the State Senate Bill 2432, House Bill 1512, and House Bill 1003. The appendix contains a copy of Section 11 of the 1993 House Bill 1003 that directs the Legislative Council to study these areas. (LMI)