This paper examines the relationship of inequality to local school funding within counties of the U.S. in 1890. Inequality, measured here on the basis of farm-size distributions, is found to significantly decrease property tax revenues used specifically for education. Issues arising from competitive under-assessment of property values between counties and the possibility that assessment rates decline with wealth within counties are accounted for in specifications. To the extent possible, measurement issues involving inequality and wealth are accounted for, and the results appear robust.