The 1985 education reform legislation in Illinois is assessed in this report. Following a summary and list of major findings and recommendations, the evaluation is divided into three main sections. The first section presents an overview of the legislation, identifies general themes, examines the reform's fiscal impact, compares the extent of reform with other states, and contrasts the scope of reform efforts to estimated need. The second section examines individual reform provisions in the areas of student assessment, student services, staff upgrading, and administrative accountability, and summarizes the fiscal impact of each provision. The third section discusses how one of the major reform provisions, which grants parents and local citizens more control over the local school budget, will particularly affect Chicago Public Schools. In general, the report concludes that expectations of rapid, dramatic change are not likely to be met. Few significant new programs have been introduced and the accountability measures enacted will have only a long term effect, it any. The report recommends that parents and citizens should take advantage of required changes in school districts to push forward their own agenda of reform at the local level. The Chicago Board of Education is encouraged to immediately implement school-based budgeting as extensively as possible; moreover, the General Assembly must maintain its reform efforts in their second year. (KH)