The education productivity problem is rising resources but only modestly rising student achievement. Current education reform aims to produce higher student achievement with stable resources. Low student performance may be due to declining social and economic conditions, lack of hard work by students, and lack of parental support. However, research focuses on what schools can do to improve productivity by controlling and improving student achievement. Both education programs and finance structures need to be restructured to accomplish productivity challenges.

School finance has become a prominent issue again due to court decisions and litigation in several states. This article explores school finance changes in the 70s and 80s and outlines key issues for the 90s, including the relationship between finance and education goals, site-based management, teacher pay, accountability, school choice, and nontraditional issues such as preschool and non-educational services for children.

PACE, a university-based research center, provides "nonpartisan, objective, independent" information on K-12 schooling in CA. Its analyses have been invaluable to lawmakers and educators during the state's active education-reform period. PACE has played a growing role in debates on school issues, exemplified by a heated debate in the CA legislature over the Commission on Teacher Credentialing. PACE offers a model for providing data for education policies when many states are seeking broader information bases. It has helped provide a better understanding of what is happening in education.

Public school policy mak­ing is embedded in a complex societal matrix. It is not possi­ble to consider the future of U.S. schools without examining the size and distribution of future populations; the future state of the economy and its ef­fect on funds available for the schools; and the political context within which decisions will be made. The public school system is a "dependent variable" of larger social and economic forces.