This document describes the comprehensive analytical framework for school finance used by the Illinois State Board of Education to assist policymakers in their decisions about equitable distribution of state aid and appropriate levels of resources to meet the varying educational requirements of differing student populations. This framework, the Resource Cost Model (RCM), provides: (1) a rationale for linking adequacy and equity considerations in state school finance formulas; and (2) questions for policymakers that will reveal a definition of what is thought to be adequate and appropriate in financial matters. The model involves three basic elements: program and service specifications made at the state level; student enrollment patterns at the district level; and resource price and cost data. In implementing an RCM, a major policy that must be confronted is the desired degree of centralization. The RCM is also valuable as a tool for planning and budgeting for any local, state, or federal educational agency. Three figures provide two views of the RCM and the Illinois RCM committee structure. (PB)