The "new" school finance approach investigates how resources are used within schools and classrooms to enhance educational outcomes, rather than focusing solely on spending patterns. The report reviews literature on resource use in education and suggests that additional funding is not sufficient to improve outcomes. Research should analyze how resources are used within classrooms and schools. Policymakers should develop complementary reforms and enact categorical funding. The report warns that education expenditures keep expanding with little to show for them.

California is at a critical juncture in education, needing up to 190,000 new teachers by 1991 and replacing 75% of the teaching force. Recommendations to improve teaching quality are proposed in this paper, focusing on changes in certification, professional training, and career structure. The state has the opportunity to ensure quality education for the 77 million students who will be taught by these new teachers.