This document was created as a resource to identify and describe four properties of effective resource allocation systems to help anchor the resource allocation review process in the State of Illinois and build districts' understanding of these properties. An effective resource allocation system will have the following properties: (1) Equitable--Provides resources based on the needs of students and schools such that those with higher needs receive additional resources; (2) Transparent--Provides resources through a simple, well-defined, and clearly documented process such that stakeholders understand how resources are allocated to schools and how resource levels are differentiated; (3) Engages stakeholders--Allows for input in the budgeting and planning process from various education stakeholders, such as school site leaders and staff, parents, and community members; and (4) Aligns with district goals and priorities--Integrates and aligns with planning and school improvement processes, focuses on improving student outcomes, and offers flexibility to be responsive to new or shifting goals and priorities.