This quantitative research has been designed to investigate fiscal equity for at-risk students in the State of New Mexico. This empirical data analysis compared equity indices before the At-Risk Index was implemented in the New Mexico public school funding formula in FY 1996-97 and after the At-Risk Index was included for FY 1997-98. Formula options based on the premise of vertical equity were reviewed. This research was selected as the 2001 New Scholars Program Award sponsored by the American Education Finance Association and the National Center for Education Statistics. The research model was presented at the 2002 AEFA National conference in Albuquerque, New Mexico. In brief, the results of the analyses showed that very modest fiscal equity gains occurred following the implementation of the At-Risk Index. However, the ability to achieve significant gains in equity scores were restricted due to a lack of state revenue growth.