In the wake of court decisions in the cases of "Serrano v. Priest,""San Antonio Independent School District v. Rodriguez," and "Robinson v. Cahill," Congress set aside funds as part of Public Law 93-380 for state departments of education to study the equitability of current educational funding arrangements. This document analyzes Delaware's educational finance scheme, provides an assessment of that scheme's vulnerability to court challenge, presents with extensive tabular illustration the relationship between school district wealth and educational quality in Delaware, discusses the applicability of various methods of wealth neutralization to Delaware's situation, examines the current status of property taxation and assessment in Delaware to test their suitability as bases for aid distribution formulas, investigates costs per student relative to district size and location to determine the most efficient organization of the state into school districts, and considers the state's funding program for the education of handicapped children. As a result of this study, the authors make policy recommendations in the areas of property tax reform, changes in state aid distribution formulas, and reassessment of policies for special education. (Author/PGD)