This book explores a range of conceptual, methodological, and empirical issues concerned with the application of needs-based resource allocation in education via formula funding in schools. The notion 'needs-based formula funding' employed in this discussion refers to the impartial application of an agreed set of explicit rules to allocate educational resources in a manner which ensures that schools receive what they need in order to deliver a pre-specified quality of education.

The book is presented in three main parts: the policy context for needs-bases formula funding, technical matters related to the construction of funding formulae, and case studies in five countries. The conclusion offers a 'checklist' for senior decision-makers in Ministries of Education that highlights the pre-conditions for undertaking a successful implementation of needs-based formula funding.

The main message that arises from the book is that needs-based formula funding of schools offers considerable benefits to both centralized and decentralized school systems in terms of increased levels of equity, efficiency, effectivements, transparency, and accountability.