The Chicago Panel on Public School Finances undertook this study to look at the financial aspects of teacher absences and substitute coverage. The study sought to discover: (1) the facts about teachers' absences and coverage by substitutes; (2) the financial costs of current policy and practice in this area; (3) the effects of current teacher substitute policy and practice on local schools and students; and (4) efforts made to improve teachers' attendance, along with possible improvements. The panel collected and evaluated Chicago Board of Education documents and reports and talked with staff in central and district offices and in the schools. School data were analyzed regarding teacher absence and substitute teacher coverage. This report examines policies and procedures for administration of teachers' absences, and also the rate of teachers' absences and of substitute coverage. It points out problems in the degree and kind of substitute coverage obtained and recommends improvements. The overriding concern is how well the students are served by the Chicago Public Schools' practices regarding teachers' absences and substitute coverages and how cost effective these practices are. References and footnotes are included, and detailed descriptions of the methods and results of the study are appended. (TE)