The authors contend that a solution to the problems raised by the "Serrano" decision is impossible without an understanding of the basic facts of public education in California. Size, cost, discrepancies, and ranking in relationship to other states and the nation are advanced to place California's public school system in clearer focus. The remaining sections of the paper analyze the judges' comments in the "Serrano" decision, advance the value of a higher level of education for all citizens, and describe how California schools are financed. Data are cited that show that the more education individuals have, the higher the voting rate and lifetime earnings, and the less unemployment and participation in criminal activities. The court's ruling on the two interrelated issues in the"Serrano" decision are summarized. These are disparities in per pupil expenditures due to local district wealth and disparities in local tax effort. Highlights of the actions of some of the more than 20 states that have become involved in a national school finance reform movement are outlined. The final chapter summarizes the legislation (AB 65) signed by Governor Brown that affects the cost and the quality of the state's public schools. (MLF)