The main purpose of this study was to examine the various finance models that are presently being used to finance facilities and to provide information for the Texas legislature, the Texas Education Agency, and local school districts concerning facilities funding models that might be used in Texas. Based on the information gathered and analyzed, several conclusions are drawn and recommendations regarding state funding of capital projects in the State of Texas are made. The model recommended for Texas is one that provides for an equalized grant and includes formulas for the distribution of state money.