Education finance policy has become an urgent concern in many state legislatures. Demands for greater equity and accountability have forced states to review, and in many cases to revise, the method by which schools are funded. This study sheds light on Indiana's financing of public K-12 education by providing a clear explanation of the components of its funding formulas, including the revisions just enacted by the state legislature, and comparing the system's key features to those of school funding systems in neighboring Midwest states. While the recent changes made by the legislature are an improvement on the previous funding formula, Indiana's school finances are still needlessly complex and obscure. During the most recent legislative session, two of the most basic components of the funding formula--the way the state counts students and the way it determines the amount of revenue for each student--were somewhat simplified. Nonetheless, serious problems of transparency, accountability, and equity remain to be addressed. Two appendices are included: (1) Indiana Revised Per-Student Revenue Formula and the Indiana State Budget for Elementary and Secondary Education. (Contains 12 tables and 34 endnotes.)