This report examines the role of the standards-based reform movement in the establishment of a constitutional standard for education in New York City. Data come from testimony and research evidence collected for a recent lawsuit filed by the Campaign for Fiscal Equity, Inc., on behalf of New York City public schoolchildren. The lawsuit charges that New York State has underfunded the New York City public schools, and as a result, denied city students their constitutional right to a sound basic education. After an introduction to the trial and the issue, the report focuses on identifying the purposes of public education; defining the term "sound basic education"; determining the level of skills required (New York State argued that an 8th grade education was sufficient, while the Campaign for Fiscal Equity argued for a higher standard); making needed skills concrete through standards; developing the new Board of Regents learning standards; and providing essential tools and conditions for students to meet standards: appropriate class sizes, sufficient numbers of qualified teachers and administrators, adequate and accessible facilities, support services as necessary to provide students the opportunity to meet state educational standards, support for parent participation, and a safe, orderly environment. (SM)