This study analyzes and explains Florida's education finance system. It explains the sources of revenue and the expenditure of funds, reporting figures for each of the state's 67 districts. It also analyzes the trend in current expenditures --that is, the day-to-day operating costs of schools--to address the question of whether they have been rising or falling in recent years. It finds that Florida spent about $7,000 per student in day-to-day operating costs ("current expenditures") in 2003-04, and a total of about $8,700 per student on all education expenditures. It also finds that inflation-adjusted current expenditures have been consistently increasing. (Contains 5 tables and 17 endnotes.) [This study was released jointly by the Milton and Rose D. Friedman Foundation, The James Madison Institute and the Collins Center for Public Policy.]