This research explores the school funding system in post-Soviet Georgia. The research aimed to answer the following research questions: (1) Does the voucher system promote cost effectiveness, and does increased funding improve the academic achievements of schools?; (2) To what extent does the school voucher funding system promote freedom of school choice?; (3) How effective is the school funding system in promoting the privatization of general education?; and (4) The content analysis research method was used in the study. The study revealed important problems in the general education funding system of post-Soviet Georgia in terms of cost effectiveness, school choice, and the development of the private school sector. The authors argue that the absence of linkages between funding and educational reform is the main challenge facing the education system. The introduction of a differentiated, need-based, top-up funding model for private schools could improve opportunities for school choice and promote the establishment of free schools.