This policy brief proposes a more rational and equitable school finance system for California that links district revenue to student needs and regional costs. The proposal aims to ensure that all districts are held harmless at current funding levels while providing essential backdrop for broader reform issues. The brief discusses the problems with the current finance system, the principles and concepts that guide the reform, and simulations of how it might work in practice. The report shows that significant improvement in the finance system can be achieved with modest new investment.