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.