Education finance involves significant expenditures but is often poorly understood. In Canada, governments spend around 15% of their total budgets on education. In 2001-2002, total education spending in Canada was $68.6 billion, with $41 billion going to K-12 education. Funding for K-12 education comes from federal, provincial, local governments and private sources. Provinces aim to provide equality of educational opportunity through measures like recognizing differences in student needs and allocating funding on a per pupil basis with additional grants for special programs. However, achieving both horizontal and vertical equity in funding is challenging as increasing one requires decreasing the other.