In this document, the author identifies the principal issues in school finance that need to be confronted and resolved. The text proposes no answers; but, rather, stimulates broad discussion and understanding of the issues as a first step toward consensus on an appropriate federal role. The author examines traditional sources of school funds and considers recent court decisions on educational finance. Most of the presentation focuses on the issues raised by such educational finance goals as providing property tax relief, providing a fair and adequate system for financing education, and preserving local control over local schools. Tables illustrate the scope of disparities in school expenditures within and among states. (Author/DN)