This brief looks at at the mechanisms used to distribute resources across public schools. We first present what we know about the current distribution of educational resources within New York City and other large city districts. Then we discuss current efforts to promote greater equity in the distribution of resources and improve student performance. We conclude with lessons and policy implications for New York State as it implements the CFE decision in New York City. These findings also apply to other large districts in the state, such as Buffalo, Rochester, Syracuse, and Albany. Our focus in this brief is on vertical equity--ensuring that schools serving students with different levels of need receive appropriately different levels of resources--rather than adequacy. But the two concepts are closely related. If we ensure that students with a variety of needs have ample resources to achieve agreed upon educational goals, we will achieve both school-level adequacy and vertical equit