Issues in the definition and evaluation of "educational adequacy" as a forerunner to establishing a financially equitable Illinois school system are examined in this paper. A list of 30 potential indicators of educational adequacy was developed for three categories: outcomes, resources, and context. A mailed survey to determine which indicators should be used to define educational adequacy elicted responses from 497 superintendents, 12 business representatives, and 20 state legislators. Preliminary findings reflect an emphasis on outcome-based education (OBE). Features of outcome-based education are discussed and recent OBE reform activities in Illinois are described. Data from a 1990 goal assessment study conducted by the State Department of Education support the view that the current Illinois Goal Assessment Project can be strenghtened and utilized as one method for educational evaluation, with a new emphasis on OBE. Four tables are included. (8 references) (LMI)