This report concentrates on the equity problem in Illinois public school finance. Central to this report is the thesis that there are three basic strategies for attacking the equity problem: make adjustments in the existing "foundation level" grant-in-aid system, abandon the "foundation" idea for a grant-in-aid system, and accept full State funding. The document examines in detail the strengths and weaknesses of each of these major strategies and the various tactical options possible under each major strategy outlined. Two chapters present an analysis of capital financing in Illinois and some of the revenue implications of school finance reforms in that State. A final chapter contains individual memoranda of comments, reservations, and dissent from members of the advisory committee. Related documents are ED 060 544 and EA 005 218-220. (Author/DN)