The hot new phrase in school finance in California is "weighted student formula" (also known as "student-based budgeting"). Proponents of this concept believe it could eventually help the state develop a straightforward approach to school funding that is more equitable and effective. Skeptics, on the other hand, question the extent to which its effectiveness has been proven and how applicable it is in California, particularly as the basis for a policy to be implemented statewide in 9,000 schools serving 6 million children. This publication briefly defines the terms being used, placing them in a California context. It also documents what is known about this reform and how it fits into the broader concepts of funding adequacy and decentralization. Finally, it raises questions that should be considered as part of California's ongoing examination of its finance system and the best approach to improving it.