This document contains the proceedings of presentations made by the Fiscal Issues, Policy and Education Finance Special Interest Group of the American Education Research Association (AERA). Ten articles focus on equitable funding systems for K-12 education and examine school financing in the following states: Florida, Illinois, New York, Pennsylvania, Texas, Virginia, California, Washington, and Michigan. Findings show that there is wide variance among states' responses to the challenges of increasing fiscal stress and changing student demographics. Following the foreword, the following articles are presented: (1) "Retrenchment and Restructuring in Florida" (J. Michael O'Loughlin and Joan L. Curcio); (2) "The Illinois Challenge" (Kathleen C. Westbrook); (3) "The State of New York School Finance: A Post Reform Perspective" (Faith E. Crampton); (4) "State of the State: Pennsylvania" (Maureen W. McClure); (5) "Under the Veil of Unconstitutionality: The State of School Finance in Texas" (Hoyt F. Watson and Hershel E. Strickland); (6) "The State of the States: Virginia" (Deborah Verstegen); (7) Keeping Track: School Finance Litigation in Virginia" (Deborah A. Verstegen); (8) "Supplemental Grants in California School Finance: A New Trend" (Lorraine M. Garcy and Lawrence O. Picus); (9) "The Right Answer to the Wrong Question: The Current State of School Funding in Washington" (Neil D. Theobald); and (10) "Equity Measurement in School Finance--Michigan" (C. Philip Kearney and David M. Anderson). References accompany each article. (LMI)