The role of state governments in providing public primary and secondary education varies greatly. In one case, the state government operates the school system; in a number of others, the state government provides a substantial amount of the revenue for local schools (half or more) and sets minimum graduation or teacher requirements; and in other cases, the state either provides a relatively small amount of revenue or sets few standards or both. What are the economic arguments for and against state involvement in financing and producing education? What social and economic characteristics of a state might influence the choice of how to produce education? Do these help explain the cases of Hawaii and New Hampshire or Washington compared to Oregon?