This report responds to a resolution from the Illinois General Assembly directing the State Board of Higher Education to study issues affecting the use and compensation of nontenure-track faculty. Surveys of teaching faculty and key administrators were conducted, and public institutions provided data on the numbers, workload, and salaries of all teaching faculty. At Illinois public universities, full-time nontenure-track faculty comprised 18% and part-time faculty 31% of all faculty. Nontenure-track faculty represented 36% of teaching faculty, 49% of faculty, and 28% of all instructional full-time equivalents (FTEs). These proportions are similar to those at the majority of public universities across the United States. At community colleges, part-time faculty comprised three-quarters of all faculty and one-half of all faculty FTEs. This represented a larger proportion of part-time faculty than community colleges nationally. At public universities, the percent of nontenure-track faculty were from representing 41% of all faculty in 1991 to representing 49% of all faculty in 1999, while the proportion of part-time faculty generally remained the same at community colleges. Major reasons reported for the use of nontenure-track faculty included: an oversupply of Ph.D.s, budgetary pressures, growth in professional and technical programs, curricular changes, and the impact of nontraditional students. Data are provided about the average reported salaries of tenured/tenure-track faculty, full-time nontenure-track, and part-time faculty. Most nontenure-track faculty reported that they were treated fairly with respect to compensation, and most were satisfied with their jobs overall. From the study results, it did not appear that the talents and abilities of nontenure-track faculty are currently being developed effectively. However, it was not possible to determine whether nontenure-track faculty were overused, since decisions about the employment and deployment of faculty seem to be best made at the local level. Institutions should monitor hiring and seek to ensure that the balance between tenured/tenure-track and nontenure track faculty is educationally appropriate. Appendix 1, which is published separately, contains details of the survey process and faculty responses. Appendix 2 is a bibliography of 14 sources. (SLD)