This paper analyzes Texas Senate Bill 351 that reforms public school funding. The bill provides for additional state funding and significant increases in local property taxes. The bill creates county education taxing units to neutralize the enormous property wealth differences found among the state's 1,056 school districts. It also provides a second funding tier that guarantees districts a minimum amount of funding per pupil for every cent of tax effort above the county unit tax level, up to a maximum of 45 cents. In addition to partially equalized enrichment, the state funding system continues to allow a degree of "unequalized" enrichment. Two new provisions limit the extent of financial inequality permitted within the funding system. The new bill provides tax rollback protection for a maximum of 8 cents of additional tax effort. Non-finance reforms included increasing the number of instructional days from 175 to 180 days, reducing the number of teacher inservice days, and providing 40 hours of staff training during regular hours of required teacher service. The strength of the bill lies in efforts to equalize funding through the county taxing units, guaranteed yield, and caps on additional funding. Weaknesses of the bill are: (1) under-funding of the guaranteed yield; (2) continued unequalized enrichment; (3) no funding for facilities; (4) changes in local property taxes that penalize those with the greatest need; and (5) lack of appropriations to make the new system operational. (KS)