Changes in state school finance systems in the 1970's and early 1980's are discussed in this report, and possible trends for the future are considered. The report reviews changes in school revenue, levels of state support, levels of expenditure relative to personal income, and the provision of new revenues by the states. The decreasing importance of the property tax as a source of revenue is the next major topic. The growing complexity of the methods used by states to allocate support is described in the third section, with attention devoted to the use of foundation programs, guaranteed tax bases, categorical aid, and weighting concepts. Recent reform efforts are noted. The role of the states in the establishment of teacher salary levels is considered next. In the concluding section the report predicts that state support will stabilize or decline, property taxes will regain importance, teacher salary levels will influence state financing more extensively, school improvement incentives will be provided, multitiered funding formulas will become more common, a higher proportion of expenditures will go toward teachers, spending variations among states will diminish, and local spending control will be reduced. (PGD)