This report presents an analysis of Illinois' present educational finance system and makes recommendations for future legislation to improve the system. The report discusses (1) State constitutional provisions, (2) the present tax structure and alternative taxing methods, (3) proposed distribution formulas and equalization methods, (4) financing the education of the disadvantaged, (5) financing school construction, (6) financing special education, (7) financing pupil transportation, and (8) financing compensation. (Pages 2, 37, and 63 may reproduce poorly.) (JF)