Although analyses of state school finance systems rarely focus on the distribution of funds to students of different races, the advent of racial discrimination as an issue in school finance court cases may change that situation. In this article, we describe the background, analyses, and results of plaintiffs' testimony regarding racial discrimination in Campaign for Fiscal Equity Inc. v. State of New York. Plaintiffs employed multiple regression and public finance literature to show that New York State's school finance system had a disparate racial impact on New York City students. We review the legal basis for disparate racial impact claims, with particular emphasis on the role of quantitative statistical work, and then describe the model we developed and estimated for the court case. Finally, we discuss the defendants'rebuttal, the Court's decision, and conclude with observations about the role of analysis in judicial decision making in school finance.In the United States, each state is responsible for public elementary and secondary education services within its boundaries. Almost all states have chosen to set up local school districts to administer and deliver education, with the property tax as the primary local revenue source. These arrangements have created a nation of 50 school finance systems with substantial funding disparities across and within states. Plaintiffs in 45 states have challenged these finance systems in their state courts and, in almost one half the states, AUTHORS' NOTE: We thank Hella Bel Hadj Amor for assistance with some of the quantitative work and anonymous referees for helpful comments. Final responsibility for content lies with the authors. Stiefel, Schwartz, and Berne were consultants for the plaintiffs, and Berne testified for the plaintiffs in Campaign for Fiscal Equity Inc. v. State of New York (2001).