A reform in the grant-in-aid system passed in Illinois in the summer of 1973 was evaluated. The State Changed on that date from a foundation system to a district power equalization system. Operational definitions of fiscal policy goals, such as fiscal neutrality and permissible variance of expenditures, were established and measurements taken pre-reform. Evidence relating to the passage of tax referenda was also introduced. The question of whether the policy goal of reward for local effort is incompatible with equity-oriented policy goals in school finance is discussed. (Author)