This study is divided into three chapters. In the first chapter the historical background essential for an understanding of the Illinois situation is presented and the various provisions of the new allocation system are described. In Chapter 2 a body of scholarly and professional literature concerning criteria for evaluation of state education grant-in-aid is reviewed and the ways and means to make the various evaluative criteria operational in a measurement and statistical sense are outlined. In Chapter 3 data from the 1973-74 school year is used along with the procedures outlined in Chapter 2 to evaluate the 1973 reforms. On the basis of one year's data, it does appear that the state has generally moved toward the several fiscal policy goals desired. Movement was made toward the goals of fiscal neutrality, variation in revenue per pupil, reduced tax rates, increased reward for effort, and equal expenditure for equal effort. (Author/IRT)