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Racial inequity is often a point brought up when arguing for K-12 school finance reform (Edbuild, 2019). However, school funding formulas maintain race neutrality, despite stated goals to achieve equity. Racial inequity in school finance is complex and cannot be narrowed down to a single issue within a policy, specific historical period, or even revenue source. Racial inequity in school finance is a multi-layered issue compounded by structural inequalities, the courts, disparities in property taxes, and the actions of state legislatures. To understand racial inequity in school finance it is essential to comprehend: 1) how schools are funded in the United States, including the major court cases that served as a precedent for present day funding practices, as well as other court cases that have attempted to address race in school finance, and 2) the evidence of racial inequity in school finance.