In 1997, an active year for school-finance legislation, states responded in a variety of ways to court decisions. This report provides an overview of school-finance legislation for that year. Historically, school-finance suits have focused on the equity and adequacy of state funding, and the decisions handed down in 1997, for the most part, followed that pattern. As school-finance cases are decided on a state-by-state basis, what is deemed constitutional in one state may not be held so in another. Where the state educational-finance system has been upheld, courts have generally said that funding for a minimal basic education system was sufficient. Where the system has been invalidated, courts have called for funding to support high-quality systems. One figure is included. A detailed table summarizes litigation outcomes by state and the status of each state's school-funding system as of June 1997. (LMI)