This paper provides a historical review of equity in funding education in Alberta. It describes government attempts to address fiscal inequities and shows how the introduction of full spending in 1994 addressed many of the equity problems in Alberta. Full provincial funding of education has proved an overall success, but it faces the following challenges: unresolved litigation regarding the opting out of separate school boards from the Alberta School Foundation Fund, the potential for average programming and delivery, a short-lived narrowing of the equity gap, the need for funds to provide vertical equity, and variable assessments of property values. A conclusion is that horizontal equity has improved due to the introduction of full funding in Alberta. One hundred percent of the funds are equitably distributed under a similar set of rules. The measure has reduced the cost of education and equalized tax rates. However, the province needs to consider ways to improve vertical equity--the need for different amounts of funding to meet different needs--and other inequities affecting student achievement and access to knowledge. One table is included. The appendix contains a list of equity indicators. (Contains 31 references.) (LMI)