The 1985 legislation (PA 84-126) creating Local School Improvement Councils (LSIC) and annual local school budget hearings laid the foundation for meaningful citizen involvement in the Chicago Public Schools. This legislation had two components: (1) annual school site budget hearings required in each school in which citizens, parents, and teachers vote on the proposed school budget for the following year; and (2) the creation of LSICs at each public school with specific rights and responsibilities over curriculum, personnel, and budget issues. The major finding of this second assessment is that the Chicago Board of Education has not adequately implemented either component of PA 84-126 and gives little indication that it has any intention of doing so in the future. The second budget hearings were a sham in 1986 and they were a sham in 1987. The administration continues to obstruct the LSICs' ability to function as intended by the legislation. The central recommendation of this assessment is that the Illinois Legislature must hold the board fully accountable to see that this legislation is implemented. Appendices constitute over half of the report and contain hearing results and survey forms. (MLF)