Successfully educating at-risk populations depends in part upon adequate and equitable funding. This General Accounting Office (GAO) report examines the current status of and trends in public-education spending. National and state trends in education spending and revenues were examined using data from the Department of Education's National Center for Education Statistics (NCES) and other sources. Measures of states' ability and willingness to raise revenues for education were also developed. Findings show that since 1980, total real expenditures in public elementary and secondary schools have increased, while the average national per-pupil expenditure increased and then stabilized after 1989. Such leveling off is due, in part, to a leveling off in the states' share of education funding. In addition, the number of poor children is increasing at a higher rate. Education's share of state budgets decreased between fiscal years 1987 and 1994, while Medicaid and corrections increased their shares. States' willingness to raise revenues for education grew more slowly than willingness to raise revenues for overall spending. Ability and willingness to raise revenues also varied widely among states. Appendices describe the research design and present data on school-age population characteristics; expenditures; federal, state, and local revenue shares; education's share of state budgets; and states' ability and willingness to raise revenue. Fourteen figures, 15 tables, and a list of GAO contacts and acknowledgments are included. (LMI)