The purpose of this study was to determine the extent to which the foundation program was an adequate and equitable funding mechanism for public schools in the state of Alabama. This study analyzed funding and academic data and evaluated adequacy and equity through the lenses of poverty, geographic location, local tax effort, and type of school district (city or county schools). An analysis of the data indicated support for one of the findings of the "Alabama Coalition for Equity, Inc. v. Hunt" (1993) case: funding for Alabama's public schools is inequitable and varies widely from district to district. However, when considering adequacy through the lens of academic proficiency on the third and eighth grade ARMT+ reading test, this study showed that, in spite of reduced state and local funding per pupil, the percentages of students proficient on this test continued to improve. Recommendations for practice include: strategies to provide supplemental funding to high-poverty districts; strategies to provide supplemental funding to districts that demonstrate a low mill equivalency value; strategies to develop a funding mechanism that is student-centered rather than teacher-centered; and strategies that allow for an expansion of permissible expenditure of funds for programs that target poverty. Recommendations for future research include: studies to determine the perceptions of superintendents about the foundation program as an adequate and equitable funding mechanism; studies to determine the extent to which the addition of Charter Schools and the Alabama Accountability Act impact equity and adequacy in the State funding formula; studies to review the implications of a 1-mill local effort requiring a supermajority of voter approval versus the 3- and 5-mill equivalents requiring only a majority for passage on the equity and adequacy of school financing in Alabama; and studies to determine which programs targeting poverty have the greatest positive impact on academic achievement. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]